SDIL, also known as 'sugar tax', has been
in force since 6 April 2018.
There are two rates of tax depending on the sugar content of the
drink:
- 18p per litre on drinks that have a total sugar content of more
than 5g and less than 8g per 100ml; and
- 24p per litre on drinks that have a total sugar content of 8g
or more per 100ml.
The policy behind SDIL is to reduce childhood obesity by
encouraging producers to change the recipes and lower the sugar
content of the drinks. The Government estimates that over 50% of
manufacturers had done so before SDIL came into effect. With
equivalent taxes in force in a number of European jurisdictions
(e.g. France, Belgium and Ireland), this will continue to be
relevant to multinationals.
