Philadelphia on Verge of Passing Sugar Tax

The proposal will now be put before a final Philadelphia council vote next week and should it be passed will mean that Philadelphia becomes the first major US city to introduce a tax on sugary drinks at this level.

The council is also recommending offering tax credits to vendors which sell healthy drinks.

 

It is hoped the tax will raise $91m over the next year and the money will be used to fund investment in community schools, parks and recreation centres among other projects.

 

The US drinks' industry is opposed to such a tax, which has previously only been introduced in Berkeley, California.

 

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.

 

The expected 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.

 

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

 

Council members Jannie Blackwell said: “A 1.5-cent-per-ounce tax increase on soft drinks will have a smaller negative impact on businesses and consumers; be more widely spread among consumers at both ends of the income spectrum; raise the funds necessary to make historic reinvestments in our young people and public spaces; and protect the City from uncertainty by increasing the General Fund balance.”

 

Another council member Cindy Bass said: “I was among the members who expressed reservations about the regressive nature of the original soda tax proposal, which would have generated funds for universally beneficial programs.”

 

“I’m proud to be part of a legislative body that, year after year, through due diligence and hard work, delivers strong and progressive spending plans to the Administration. I look forward to working with the Administration to ensure that these initiatives create family-sustaining jobs for Philadelphia residents.”

 

Consumer Watchdog, The Centre For Science in the Public Interest, has now called on other cities to follow Philadelphia.

 

CSPI president Michael F Jacobson, said: The vote today in Philadelphia is perhaps the most important defeat for Big Soda since the adoption of a nationwide soda tax in Mexico. We expect that Philadelphia’s action will embolden mayors, city council members, governors, and state legislators from around the country to make these sensible taxes on soda the rule, and not the exception.”