The number of kids who are obese has increased in the past two decades and this has been linked to added sugars in drinks. The government proposes the implementation of sugar tax but soft drink makers are thinking of filing legal action against it.
The UK government's controversial sugar tax could compromise the economic viability of the entire soft drink industry, companies warned. Health experts have pushed for the adoption of soda tax to prevent people from overindulging in sugary drinks, which have been linked to the increased obesity numbers in both adults and children.
The World Health Organization said that obesity rates have ballooned to more than half a billion among adults in 2008. An estimate of 1.4 billion adults are overweight and about 2.8 million people die as a result of being overweight or obese every year.
This grim truth has prompted several health organizations and governments to implement measures to at least curb the growing epidemic. Aside from information dissemination about the risks of obesity, they also recommend children and adults to avoid eating or drinking sugary treats as a precautionary measure.
The New Soda Levy
This year, the Chancellor of the Exchequer has announced a new levy on soft drinks that contain added sugar.
"There had been wide speculation about a 'sugar tax', but these measures just target the soft drinks industry. As with the introduction of any new tax, we welcome the long lead in period, and the consultation on how the levy will operate," said Peter Dylewski, Chair of the CIOT's Indirect Taxes Sub-Committee.
The taxation will be implemented in April 2018 and will be paid by soft drink manufacturers and importers. This move could raise around £500 million ($ 722.5 million) a year.
Soda Companies Prepare To Sue The Government
Soda companies mull on suing the government over the sugar tax which is expected to be implemented in two years' time.
Companies claimed that the Chancellor's Budget announcement is illegal since it discriminates against the soda industry. This is because the levy only pertains to soft drinks and did not include other sugar-sweetened drinks like milkshakes.
"It's fair to say we are more than just considering legal action," said a senior industry source. "This has been rushed through without warning."
Photo: Jannes Pockele | Flickr
