American Beverage Association to Take Legal Action to Stop Philadelphia Sugar Tax

Philadelphia councillors last night voted by 13 to four to bring in a 1.5 cents-per-ounce tax added to soft drinks with added sugar and other sweeteners.

The tax, which had been previously approved in a preliminary hearing, will be introduced in January next year.

 

This means that Philadelphia will become the first major US city to introduce a tax on sugary drinks at this level.

 

However, the new tax has been fiercely contested by the US beverage industry, which believes it unfairly singles out the beverage industry and is "unpopular “with the public.

 

Companies such as Coca-Cola and PepsiCo are in a long-standing battle with lawmakers and health campaigners regarding selling their sodas and other sugary drinks.

 

After the vote was passed, the ABA said: "The tax passed today is a regressive tax that unfairly singles out beverages – including low- and no-calorie choices. “

 

“But most importantly, it is against the law.  So we will side with the majority of the people of Philadelphia who oppose this tax and take legal action to stop it.”

 

“The fact remains that these taxes are discriminatory and highly unpopular - not only with Philadelphians, but with all Americans. Similar tax proposals have been rejected 43 times across the country in the past eight years, including twice in Philadelphia."

 

The council hopes the tax will raise $91m in its first year and the money will be used to fund investment in community schools, parks and recreation centres among other projects.
 
The introduction of the sugar tax marks the third time that Philadelphia City Council has attempted to introduce such a tax and will be seen as a victory for health campaigners. Such a tax has previously only been introduced in Berkeley, California.

 

The council had originally tried to introduce a three cents-per-ounce tax, though the council said such a measure would raise excessive revenues.

 

Campaigning group the CSPI said: "The final vote on Mayor Jim Kenney’s soda tax proposal is a huge win for the city’s children and parents, who will now benefit from expanded pre-K and parks. The mayor’s leadership and commitment made all the difference.

 

“And it’s a historic defeat for Big Soda, which set more than $4 million on fire in an attempt to kill the proposal. We congratulate the city council for standing up to the soda industry, and especially for rejecting the industry’s ethically dubious attempt to induce the council to scuttle the tax."