This new levy, in effect since April 2018, applies to the production and importation of soft drinks containing added sugar. A levy on soft drinks will contribute to the government’s plans to reduce childhood obesity by removing added sugar from soft drinks. The levy encourages producers of sugar-sweetened beverages to:
- Reformulate their product to reduce the sugar content.
- Reduce portion sizes for added sugar drinks and importers to import reformulated drinks with low added sugar to encourage consumers of soft drinks to move to healthier choices.
By following these two recommendations, producers and importers of added sugar soft drinks can pay less or even escape the charge altogether.