UK to charge soda tax on sugary drinks

The U.K. government announced a new tax on sugary drinks Wednesday, in an attempt to tackle childhood obesity.
Drinks with total sugar content above 5 grams per 100 milliliters will be affected by the levy, with a higher rate for drinks with more than 8 grams.

The top rate will affect some of the world's most popular sodas, including Coca-Cola (KO), Dr Pepper (DPS), Pepsi Cola (PEP), Mountain Dew, 7-UP and others.

The government is hoping the tax will help cut down childhood obesity rates in the U.K., which are amongst the highest in developed world. One in five English children is obese by the time they leave primary school, the government said.

Research quoted by the government suggest that sugar plays a major role in childhood obesity, with sugary drinks being the single biggest source of dietary sugar for children and teenagers.

"We understand that tax affects behavior. So let's tax the things we want to reduce, not the things we want to encourage," said George Osborne, the U.K. Chancellor of Exchequer.

Anti-sugar campaigners welcomed the news. Celebrity chef Jamie Oliver called the step "a profound move that will ripple around the world." He has been among those lobbying for the sugar tax for several years.

"Our kids' health comes first...bold, brave, logical and supported by all the right people," Oliver said.

The news resonates in the U.S. Former New York City mayor Michael Bloomberg said the announcement "puts the U.K. at the forefront of the global fight to reduce obesity & diabetes."

Bloomberg had advocated similar tax in New York.

Source: CNN Money
Full version of the article is available here.