Dairy industry to fight call for sugar tax on milk-based drinks

Milk-based drinks are at risk of becoming subject to the Government's so-called '˜sugar tax' as part of a strategy to tackle the country's rising obesity rates following a recommendation by MPs.
At the moment drinks that are at least 75 per cent milk are not subject to the sugar tax, but MPs want that to change.At the moment drinks that are at least 75 per cent milk are not subject to the sugar tax, but MPs want that to change.
At the moment drinks that are at least 75 per cent milk are not subject to the sugar tax, but MPs want that to change.

Ministers are being urged to extend the tax - officially known as the soft drinks industry levy - to include all milk-based drinks.

Since April 6, 18p per litre (ppl) has been added onto the price of drinks that have a total sugar content of more than 5g and less than 8g per 100ml.

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An extra 24ppl is charged on drinks that have a total sugar content of 8g or more per 100ml.

To avoid the tax, some drinks manufacturers have altered their recipes by reducing sugar content and using sweeteners instead.

For now the levy does not apply to drinks that are at least 75 per cent milk but MPs want that to change in a forthcoming refresh of the Government’s Childhood Obesity Plan.

Any move to extend the tax to all milk-based drinks would be a mistake however, argued Dairy UK, which represents dairy producer co-ops, milk processors, dairy farmers and bottle milk buyers.

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Dr Judith Bryans, the group’s chief executive, said: “Dairy UK supports the principle of what the committee is trying to achieve. However, we do not agree with the extension of the Soft Drinks Industry Levy to include all milk-based drinks. This would have a detrimental impact on the marketing of high quality, safe and nutritious dairy products; products which are nutritionally beneficial to children rather than being harmful.”

Dr Bryans added: “Milk and dairy products are proven sources of vitamins and minerals including calcium, iodine, vitamin B12, and riboflavin as well as protein, making dairy an important part of a healthy, balanced, affordable and sustainable diet. Regrettably, because of the way the Nutrient Profiling Model has been developed dairy products end up being penalised alongside junk foods.

“Milk-based drinks should, in our view, be exempt from the recommendations made by the committee.”

Dairy UK said it will take up its objection with Public Health England, the Government and other stakeholders, on the basis of the contributions milk-based drinks make to children’s nutrient intakes.

Whitehall estimates suggest that nearly a third of children aged two to 15 are overweight or obese in the UK.

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