Would you pay tax on your Coca-Cola? | AccountingWEB

Would you pay tax on your Coca-Cola?

Apart from VAT, of course. 

After much debate about taxing hot food, it seems there's now discussion about taxing soft drinks. 

More than 60 medical bodies are apparently calling for a 20p-per-litre tax on soft drinks to be included in this year's budget, which they say would raise £1bn per year, according to BBC News.  

What do you think of it as a concept though? Would you agree with paying more tax for a bottle of Coke?

Old Greying Accountant's picture

Um ...    1 thanks

Old Greying Acc... | | Permalink

... Surely it would be better to zero-rate water? Any such move would have zero-health effect, only a tax revenue increasing one. And so what? will that apply to full sugar coke, but not diet variations with all the chemical crap and carcinogens they are pumped full of? Hang on, getting deja-vu now - didn't we have this thread recently?



taxhound's picture

fat tax

taxhound | | Permalink

The fat tax in Denmark was recently withdrawn as it did not work....


When will politicians ever learn?


Of course it won't work    1 thanks

mbdx7ja2 | | Permalink

No-one is seriously telling me that the cost of Coke is what it costs to make and move to the point of sale.  For years Coke bottles hovered below the psychological barrier of £1 and now they are probably just under the barrier of £1.50 or £2 (depending on establishment) with cans below the £1 barrier.

Any tax will simply be absorbed by Coke into their pricing model, or used as an excuse to put the price up to the next psychological level which maximises revenue based on units sold.

The only likely impact of this measure in my view will be to divert some of Coke's profits to the Treasury.

Rachael_Power's picture

It's not just Coke, I think,

Rachael_Power | | Permalink

It's not just Coke, I think, but a tax on all soft drinks. I used Coke just as an example, but very good points there.

Old Greying Accountant's picture

From what I saw ...

Old Greying Acc... | | Permalink

... it would be regular soft drinks, as opposed to diet variants.

Personally, I think it is better to drink sugary drinks than those laced with aspartame, acesulfame, saccharin etc, but in moderation - once or twice a week, not per day or more.

Constantly Confused's picture

Fizzy drink    1 thanks

Constantly Confused | | Permalink

I used to drink a fair amount of fizzy drinks at school, then as I got older I supplemented it with coffee.  I recently gave up caffiene and now people think I'm on drugs/depressed as I have gone from being Tigger to being Eeyore.

The VAT Doctor's picture

A different idea

The VAT Doctor | | Permalink

I would actually tax water at 40%, because if people are silly enough to buy what is available from the tap, I say tax 'em high!  Honestly, do people not remember the Dasani (Coke owned) scandal?


Or Peckham Spring Water!


Personally, taxing coke is fine, because I much prefer Pepsi (max)

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