We're delighted that the soft drinks industry have risen to the challenge and taken tonnes of sugar out of their products. The tax is estimated to raise around £520million which will go to the Department for Education to fund sports in primary schools.
The main reason for imposing the tax is to reduce the health problem of obesity. The new scheme will see the price of many popular fizzy drinks such as Coca-Cola, Pepsi and Sprite increase in both shops and restaurants, but how much will your favourite drink increase by?
Sugar-sweetened soft drinks are the main source of the sugar that children consume.
In October previous year, the Government announced levy on drinks which contain a significant amount of sugar.
"Taxes on consumer goods are always regressive, in that people on lower income generally pay more as a proportion of their income". Those with 5-8g of sugar per 100ml will face a tax of 18p per litre.
In order to tackle the problem of rising obesity and also tooth decay among the children, Britain has started imposing a sugar tax on all the soft drinks. Many argue that having a Coke or whatever other sugary drink is a personal choice and shouldn't be taxed - however, similar taxes have always been applied to alcohol and tobacco (among others) in most parts of the world.
The tax on soft drinks, commonly referred to as the "Sugar Tax", has already resulted in over 50% of manufacturers reducing the sugar content of drinks since it was announced in March 2016, the equivalent of 45 million kg of sugar every year says the government.
A spokesman for the drink's maker A.G. Barr said: "Irn-Bru continues to be made using the same secret Irn-Bru flavour essence, but with less sugar". They also discovered sugar taxes will most improve the health of the poorest, who are more affected by non-communicable diseases such as heart disease, type 2 diabetes and cancer, which are affected by diet (The Telegraph). However, a FactCheck conducted by TheJournal.ie found that, while consumption might be reduced, the net effect on obesity rates was negligible.
Numerous major flavours of Fanta were overhauled a year ago.
Like Tesco "has been one of the most successful", as it brought 85 per cent of its own-brand soft drinks below the 5g level, according to The Guardian.