LONDON – How much sugar a drink contains will matter—at least in Britain, when its new soda tax goes into effect. The New York Times reports that the British tax on beverages differentiates between drinks with a lot of sugar and those that are sugar-free, a much different approach from the soda taxes in Mexico and Berkeley, California, which levy a surcharge per volume of drinks with any amount of sugar.
The British soda tax would levy around nine cents per 12-ounce cans of drinks with between three and five teaspoons of sugar; 12 cents per can of regular colas with more than nine teaspoons of sugar; and no tax for sugar-free or beverages with less than three teaspoons of sugar per can.
Some view the tiered tax as an incentive for soda makers to develop more low-sugar or sugar-free options. “If there are small changes they can make to get under the threshold without really affecting mouth-feel and taste, they may well do that,” said Donald Marron, who studies tax policy as a fellow at the Urban Institute.
Pepsi Co and Coca-Cola already sell low-calorie versions of their premiere brands, such as Coca-Cola Life and Pepsi True. Other low-sugar beverages are in their portfolios as well, spurred by consumer demand for healthier drinks and the companies’ own commitment to reducing calories by 20% in drinks sold in the United States before the end of the decade. Full-calorie soda consumption is on the wan in the United States, with Americans guzzling 25% fewer sodas than in the late 1990s.