Philadelphia is raking in more money than expected from its 1.5-cent-per-ounce soda tax.
The sugary beverage tax brought in $6.4 million in February, slightly more than January but on-target with projections.
Meanwhile, soda manufacturers are downsizing their soda offerings as a response. The Philadelphia Inquirer reports that mini-cans and 1 liter bottles are now en vogue with manufacturers because they incur less tax.
Pepsi said that its “larger package” sales have taken a 50% hit in the city with overall sales down 40%. Pepsi also plans to lay off up to 100 workers in the city.
The tax started in January, and the Philadelphia hopes that it will bring in $91 million annually. The money goes to fund pre-K and upgrading city park and rec centers.
Although the tax is starting strong, it is also under appeal — the next court date is in Pittsburgh on April 5.
More: “Coke, Pepsi fight soda tax with smaller bottles,” Joseph N. DiStefano, The Philadelphia Inquirer. Continue reading “The Dramatic Impact of Philly’s Soda Tax: Thursday’s Tax Brief” »