Baku. 18 June. REPORT.AZ/ Beverage biggies, The Coca-Cola Company and PepsiCo, will now have to bear an extra tax on its sodas in Philadelphia, one of the biggest cities in the U.S. to have approved a soda tax.
Report informs citing the foreign media, the Philadelphia city council, on Thursday, finally approved a 1.5 cent-per-ounce tax on sugary drinks by a vote of 13-4. Sugary drinks include regular and diet soda and energy drinks. The tax is set to take effect next year.
Mayor Jim Kenney’s proposed tax is not exactly an attempt to limit sugar consumption in the city.
The estimated $90 million in new tax revenue next year is proposed to be used to fund expansion of prekindergarten and community schools and an overhaul of recreation centers.
Only Berkeley, CA, imposes a similar tax on sugary drinks. Soda tax proposals have failed in many cities and states in recent years. The success tasted in Philadelphia will be a boost for other cities considering such a tax.
The soda tax is expected to reduce the consumption of sugary drinks in the city, which will hurt soda sales of companies like Coca-Cola, Pepsi and Dr Pepper Snapple Group.