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TECH FLASH

Philadelphia on verge of passing drink tax

Philadelphia is set to institute a tax on sugar-sweetened beverages

By Jeremy Gerrard
Philadelphia on verge of passing new tax
June 14, 2016

Promising a one-two punch to obesity while filling the pockets of cash-strapped government programs, Philadelphia is on the verge of becoming only the second city in the nation to institute a tax on soda. Last week, the City Council announced a majority of its members had reached an agreement on a 1.5-cents-per-ounce tax on sugar-added and artificially sweetened beverages. The measure is expected to receive final approval at the council’s meeting this Thursday.

The revenue from the tax—approximately $91 million during the next year—will fund pre-K expansion, community schools and reinvestments in parks and recreation centers, in addition to padding the city’s general fund.

Berkeley, CA was the first US city to institute a tax on soda in 2014. Similar measures previously failed in Philadelphia and many other cities around the country.

Philadelphia’s tax will apply to all sugary drinks including regular soda, sports drinks, teas and other beverages with added sugars. But, unlike Berkeley’s law, Philadelphia’s also includes artificially sweetened beverages like diet soda.

KEYWORDS: beverage industry food and beverage industry trends soda

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Jeremy Gerrard was Food Engineering's Digital/Online Editor. He is a graduate of Auburn University with a degree in journalism. His previous work experience includes years spent as a reporter with the Daily Local News out of Chester County, PA. In addition to writing feature articles for Food Engineering, Jeremy covered the Dry Processing, Field Reports and People and Industry news sections.

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