Pursuits

Philadelphia Hits Soft-Drink Industry With Historic Tax

  • Full-calorie and diet drinks face levy of 1.5 cents per ounce
  • Fiscal focus by soda-tax campaign indicates new strategy
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The City of Brotherly Love is straining its relationship with Big Soda.

Philadelphia on Thursday became the first major U.S. city to pass a tax on soft drinks, dealing a significant blow to an industry increasingly facing a consumer backlash over health concerns. In a 13-4 vote met with cheers and applause, the City Council approved a plan to add a 1.5-cents-per-ounce tax on soft drinks containing added sugar or artificial sweeteners.