A Global Timeline: When was the sugar tax passed?

December 24, 2025 •

2 min read

In March 2016, the UK government announced its intention to implement a Soft Drinks Industry Levy, but the question of when was the sugar tax passed is more complex, with different jurisdictions adopting their own versions at various times over the last decade. This global trend in taxing sweetened beverages reflects a growing concern over rising obesity rates and chronic disease worldwide.

Quick Summary

This article examines the history and implementation timeline of taxes on sugar-sweetened beverages globally. It details significant dates, including landmark adoptions in Mexico and the UK, and explores the policy's motivations, structure, and effectiveness in different jurisdictions.

Key Points

UK Levy: The UK Soft Drinks Industry Levy (SDIL) was announced in March 2016 and implemented in April 2018, featuring a tiered tax on manufacturers based on sugar content.
Mexican Landmark: Mexico passed a volumetric excise tax on SSBs in January 2014, a policy that significantly influenced the global adoption of similar taxes.
US City Pioneering: Berkeley, California, was the first US city to pass a soda tax in 2014, with implementation occurring in 2015.
Global Adoption: More than 50 jurisdictions worldwide have implemented sugar taxes, with notable examples including South Africa (2018), France (2012), and Ireland (2018).
Motivation: The taxes are primarily driven by public health goals, aiming to reduce obesity, prevent chronic diseases, and raise revenue for health initiatives.
Impact: Evidence shows that sugar taxes can reduce SSB consumption and motivate manufacturers to reformulate products to lower sugar levels.
Different Structures: Sugar taxes vary in structure globally, with some being volume-based, some tiered by sugar content, and others a flat percentage of the product's value.

Understanding the Global Sugar Tax Phenomenon

The concept of taxing high-sugar products, especially soft drinks, has been gaining momentum globally over the last several decades as a public health intervention. While early examples existed, a significant acceleration occurred in the 2010s, with countries and municipalities passing legislation aimed at curbing sugar consumption. The timing of these measures varies significantly by location, highlighting a complex and staggered worldwide effort.

The UK's Soft Drinks Industry Levy

The UK's Soft Drinks Industry Levy (SDIL) is a prominent example of a sugar tax. Announced in March 2016, it was legislated in the Finance Act 2017 and implemented in April 2018. This tiered system taxes manufacturers based on sugar content, encouraging reformulation and showing positive results in reducing sugar in soft drinks.

Early Adopters and the Mexican 'Tipping Point'

Before the UK, countries like French Polynesia and Nauru had early health-related SSB taxes in the 2000s. A key moment was Mexico's January 2014 volumetric tax on SSBs. Berkeley, California, followed as the first US city with a soda tax in 2014, implemented in 2015.

Motivations for Adopting Sugar Taxes

The main reasons for sugar taxes are:

Public Health: To reduce free sugar consumption and combat related health issues like obesity and diabetes.
Revenue Generation: To fund health initiatives.
Manufacturer Reformulation: To encourage companies to reduce sugar in products.

Global Expansion and Comparison of Notable Policies

The trend has spread globally, with over 50 jurisdictions adopting SSB taxes. Each policy has unique features.

Comparison of Key Sugar Tax Implementations


Feature	United Kingdom	Mexico	South Africa	Philadelphia, US	Hong Kong	Malaysia
Passed/Announced	March 2016	January 2014	March 2018	January 2017	August 2021	July 2019
Implementation	April 2018	January 2014	April 2018	January 2017	August 2021	July 2019
Tax Instrument	Tiered Excise Duty	Volumetric Excise	Excise Tax on Sugar Content	Excise Tax per Fluid Ounce	Excise Tax on SSBs	Excise Tax on Sugary Drinks
Structure	Tiered (5g/100ml, >8g/100ml)	Flat rate per liter	Flat rate per gram of sugar	Flat rate per ounce	Per beverage type	Per type/sugar amount
Exemptions	Milk-based drinks, pure juice	None	Fruit juices	Excludes fruit juices, milk drinks	Milk-based drinks	Milk-based products

Documenting the Global Spread

Further examples of countries that have implemented sugar taxes include Hungary (2011), Chile (2014), South Africa (2018), Ireland (2018), and Portugal (2017). While not all proposals succeed, the global trend continues.

Conclusion

The sugar tax is a public health policy adopted at different times by numerous jurisdictions globally, not a single law. Initial efforts in places like the Pacific Islands preceded significant momentum generated by Mexico in 2014 and the UK in 2018. These policies aim to reduce sugar consumption and incentivize reformulation to improve public health, with varying structures and implementation dates worldwide. For a deeper dive into the international evidence and experiences with sugar-sweetened beverage taxes, read this document from The World Bank: Taxes on Sugar-Sweetened Beverages: International Evidence and Experiences.

Frequently Asked Questions

The UK's Soft Drinks Industry Levy (SDIL), commonly known as the sugar tax, came into force in April 2018, two years after it was announced in the March 2016 budget.

While Mexico's 2014 SSB tax is seen as a major tipping point for global action, some Pacific Island nations implemented health-related SSB taxes in the early 2000s, and taxes for revenue purposes date back to the 1920s.

There is no federal sugar tax in the US, but several cities and localities have passed their own, including Berkeley (2014), Philadelphia (2016), Boulder (2016), Oakland (2016), and Seattle (2017).

The UK's SDIL is a tiered tax on manufacturers, not consumers. Drinks with 5-8g of sugar per 100ml are taxed at one rate, while those with more than 8g are taxed at a higher rate.

Research indicates that sugar taxes have been effective in reducing the purchase and consumption of taxed beverages and have incentivized manufacturers to reformulate their products to contain less sugar.

Yes, many jurisdictions provide exemptions for certain drinks. The UK levy, for example, exempts milk-based drinks and pure fruit juices.

The main motivation is to improve public health by addressing the high rates of obesity and chronic diseases linked to the overconsumption of sugar, especially from soft drinks.