Wednesday 21 February 2018

Philadelphia 'soda tax' revenue exceeds expectations

A sticker alerts customers of the sugar tax posted by sweetened beverages at the IGA supermarket in the Port Richmond area of Philadelphia (AP)
A sticker alerts customers of the sugar tax posted by sweetened beverages at the IGA supermarket in the Port Richmond area of Philadelphia (AP)

Philadelphia's new tax on sweetened drinks has exceeded expectations, bringing in 6.4 million dollars (£5.1 million) in just one month.

Figures released by the US city's department of revenue show the so-called "soda tax" brought in more than the expected 5.9 million dollars (£4.7 million) expected for the month of February.

The 1.5-cent-per-ounce tax on sweetened and diet soft drinks funds pre-kindergarten and community schools.

It will also help pay for renovation work on recreation centres, libraries and parks.

The tax generated 5.9 million dollars in January, more than double the predicted total of 2.3 million dollars (£1.8 million).

The tax is imposed at the distributor level. If fully passed onto the consumer, it amounts to 1.44 dollars (£1.15) on a six-pack of 16-ounce bottles.

Pepsi is pulling its two-litre bottles and 12-packs from Philadelphia stores to offer products and sizes which working families can better afford.

Press Association

Promoted Links

Today's news headlines, directly to your inbox every morning.

Promoted Links

Editors Choice

Also in World News