Manufacturers could sue the Government through the European courts on the basis that other types of food and drink are not included.
Gavin Partington, director general of the British Soft Drinks Association, told The Guardian: “This just reaffirms our view that this tax is ill-considered. The evidence does not suggest it will be effective and taxpayers will be left paying a heavy price for it.
“At this stage all options are on the table. We need clarification about how this tax is going to work, exactly what’s excluded and what’s not. Nothing can be ruled out at this stage.”
The sugar tax will come into force in 2018, adding 24p a litre to soft drinks with the highest sugar content and is expected to cost £1bn to implement. The chancellor predicts the tax will raise £520m in its first year.
A Coca Cola spokesperson told The Guardian: “We need to know more about the levy and how the government plans to implement it. Once this is clear to us, we’ll decide on what steps to take as a business and how best to continue the work we have done to help people consume less sugar and calories from our drinks.”