The UK government has scrapped the proposal of levying sugar tax on food and drink products, which are believed to contain high calories and culprits for growing obesity levels in the country.
The government is believed to be not in favor of levying sugar tax of up to 20%.
It is expected to reveal ways of tackling growing obesity problem by the end of February, reported Telegraph.co.uk.
Instead of levying taxes, the government intends to compel the industry in reformulating their products with less sugar content, reported The Financial Times.
It intends to use the threat of tax as a way to make industry adhere to government's requirements.
While the industry is lauding this move, the government is facing flak from consumer groups and health groups, reported Telegraph.co.uk.
National Obesity Forum spokesman Tam Fry was quoted by Telegraph.co.uk as saying: "The decision must be reversed or it will be more proof that the Government is in the thrall of the food industry and the sugar barons will have won yet again.
"NHS chiefs know full well that the combination of child and adult obesity could topple the UK's most cherished institution."
Action on Sugar chairman and founder Graham MacGregor was quoted by the publication as saying: "It seems to me that Cameron is being very stupid rejecting this.
"All the experts agree that the plan we have will prevent childhood obesity and type 2 Diabetes. Everything he does ends up in chaos, this was his one opportunity to achieve a legacy. He will be a Prime Minister who has achieved nothing."
Image: Food and drinks industry will rejoice the latest move by UK government. Photo: Courtesy of Apolonia/FreeDigitalPhotos.net.
