UK Sugar Tax to Expand in 2028: Sugary Dairy Drinks Included
2026-01-14
UK Sugar Tax to Expand in 2028: Sugary Dairy Drinks Included
To address the lingering issue of high childhood obesity, the UK government has announced a major expansion of its "Soft Drinks Industry Levy" (commonly known as the Sugar Tax), which has been in effect for seven years.
As disclosed in USDA London Office’s Policy Brief No. UK2025-0048 (December 2025), the reform will take effect on January 1, 2028. Key adjustments include: 1) The tax threshold will be tightened from 5g sugar/100ml to 4.5g sugar/100ml; 2) Sugary dairy and plant-based milk drinks will be included in the tax scope for the first time, covering supermarket-sold products like milkshakes, flavored milk, sweet yogurt drinks, chocolate milk, and ready-to-drink coffee.
First launched in April 2018, the original Sugar Tax only targeted non-dairy soft drinks (e.g., fruit juices, sodas) with a two-tier rate: £1.94 per 10 liters for drinks with 5–7.9g sugar/100ml, and £2.59 per 10 liters for those with ≥8g sugar/100ml. Official data shows the policy has cut average sugar content of relevant drinks by nearly 30%, with over half of products escaping taxation via formula improvements.
Notably, the expansion aims to close a long-standing loophole: previously, high-sugar dairy drinks were exempt due to their "dairy-containing" attribute, becoming a hidden source of excessive sugar intake for children (e.g., a 500ml chocolate milk often contains over 30g sugar, exceeding WHO’s daily limit).
Clarifications on tax scope: Prepackaged sugary dairy/plant-based milk drinks (e.g., oat milk, soy milk) are subject to the tax; freshly prepared drinks (e.g., lattes, milkshakes in cafes/restaurants) are temporarily exempt.
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