What is the sugar tax?
The sugar tax is the common name for the Soft Drinks Industry Levy. It is a UK tax on producers and importers of soft drinks with added sugar. Since April 2026 it is about 21p per litre for drinks with 5g to under 8g of sugar per 100ml. Drinks with 8g or more pay about 28p.
The levy was introduced in April 2018. It is paid by companies, not directly by shoppers, though firms can pass the cost on. Pure fruit juices, milk-based drinks and drinks with under 5g of sugar per 100ml are currently exempt. The rates are £2.08 and £2.78 per 10 litres from 1 April 2026. Revenue from the levy was originally linked to funding for school sport and healthy breakfasts in England.
Its main aim was to get manufacturers to cut sugar, and many did. Lots of popular drinks were reformulated before the levy started to fall below the threshold. Studies have found a significant drop in sugar sold through soft drinks. Revenue has been lower than first forecast because so many drinks changed. The levy is often cited abroad as an example of a successful health tax.
The levy is being widened. From 1 January 2028, the lower threshold will fall to 4.5g of sugar per 100ml. Pre-packaged milk-based drinks with added sugar, such as milkshakes, will also be included. Supporters see it as an effective public health tool. Critics call it a nanny state measure that hits poorer households.
Who it affects: Makers of sugary drinks
The left tends to support the levy as a way to tackle obesity and push firms to reformulate. Some want it extended to other foods.
The right tends to see it as nanny state interference and a regressive tax on ordinary shoppers.
Britain is split. Now you decide.
Set the soft drinks levy in the WeDecide Budget and balance health gains against cost of living complaints.
Play WeDecide freeCommon questions
Does the sugar tax apply to fruit juice?
No. Pure fruit juice is exempt because the sugar is not added.
Who pays the sugar tax?
Producers and importers pay it, though they may pass the cost on to customers.
Has the sugar tax worked?
Studies show a large drop in sugar sold in soft drinks, mainly because firms reformulated.