The lack of allowance for naturally occurring sugars in dairy alternative drinks as part of the sugar tax extension has been deemed “unfair” by the plant-based sector.
The government this week announced that the sugar tax will now include milk-based and milk substitute drinks.
However, it introduced a lactose allowance to account for naturally occurring sugars in milk for milkshake brands – but not for sweetened dairy alternative options.
Concerns have been raised by the Plant-Based Food Alliance that this policy decision gave dairy products a “market advantage” as “this means that a sweetened dairy-based product will be taxed less than a sweetened plant-based milk substitute with the same amount of added sugar”.
The alliance said it supported measures that promoted public health and that it welcomed the exemption to unsweetened plant-based milk substitute drinks, but it said that the lactose allowance “undermines the intent” of the levy.
Read more: Dairy industry welcomes ‘lactose allowance’ in sugar tax change
The lack of allowance for naturally occurring sugars in plant-based options meant that non-dairy options may be pushed above price parity, discriminating against consumers who cannot consume dairy products, it said.
“Favouring sweetened milk-based products over sweetened plant-based products is a missed opportunity to deliver fairness and clarity and creates an uneven playing field,” it added.
The Plant-Based Food Alliance said that the same logic should be applied to account for the naturally occurring sugars in dairy alternative drinks, as they also offer nutrients, vitamins and minerals.
The alliance has called for a consistent policy to better support health goals and ensure fairness for the market.
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