UK Head of Retail at KPMG, David McCorquodale, comments on the new soft drinks industry levy to encourage companies to reduce the amount of sugar in drinks they produce.
Commenting on the announcement that the Chancellor has introduced a new soft drinks industry levy to encourage companies to reduce the amount of sugar in the drinks they produce, UK Head of Retail at KPMG, David McCorquodale said:
“With the estimated cost of obesity to the UK economy standing at £27bn, taking steps towards reducing sugar consumption in young people is clearly a priority for the Government. However for retailers the introduction of a new “sugar tax” will mean increases in costs which they then may choose to pass on to consumers.
“It is unclear whether education, regulation or a tax will be the cure for obesity, but for retailers, the introduction of a levy may seem heavy handed when there are various other options to explore. Regulation, for example, could be a step in the right direction, with quotas imposed on soft drinks to not exceed a certain level of sugar/ calories. Many in the retail industry may therefore feel announcing a tax on sugary drinks before further consultation, could be perceived as premature.”
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