Accountancy group UHY Hacker Young provides reported that 326 UK drinks businesses have been affected by your soft drinks tax, otherwise known as any ‘sugar tax’.
The finding comes from a report by HM Sales revenue & Customs (HMRC). The effects of the duty, which came into effect within April, has pushed countless drinks businesses to reformulate their products in order to avoid charging consumers more, with companies such as AG Barr minimizing their sugar content of Irn-Bru by over half via 10.3g/100ml to 4.7g/100ml.
According in order to Hacker Young, due to the plethora of drinks companies following match and using sugar alternatives, the exact amount brought in from the tax so far is an estimated 240 million. This is the significant shortfall of the believed 520 million per year that the government had expected to fund faculty sports initiatives.
The figures are generally indicative of how a large element of the beverage business has begun to adapt to the sugar tax not having compromising on the taste of products or profits of soft cold drinks.
Hacker Young has noted the task the industry has faced within recovering from such a tax.
The agency said: “The evidence of health benefits from the taxes is relatively limited, even so the sugar tax certainly boosts the burden of cost and red tape for businesses.
“It’s great for see the soft drinks manufacturers answering so positively to the innovative tax C reducing sugar quantities in drinks makes sense monetarily, given the potential cost of your levy.”