The Treasury’s plans to introduce a so-called ‘sugar tax’ on fizzy drinks have been attacked by the TaxPayers' Alliance, which says the move would result in a drop of some £17m in tax revenues because of the impact on the economy and employment
The campaigning group says its analysis is based on research into the effect of a sugar tax in Mexico, which saw a 12% cut in sweetened drink sales during its first year of operation, and reckons that if implemented in the UK, there would be 5,624 fewer jobs.
Jonathan Isaby, Chief Executive of the TaxPayers' Alliance, said:’ Not only will the sugar tax fail in its public health aims, there is a very real risk that it will destroy jobs and harm economic growth. Given it will also hit the poorest households the hardest, the already flimsy case for a sugar tax is rapidly dissolving. The government should be focusing on policies which encourage economic growth, so the sugar tax should be immediately scrapped.’