Philadelphia – Philadelphia added a 1.5-cent-per-ounce tax on soda and other sugar drinks at the start of this year. Now one study says that the tax isn’t bringing in as much money as lawmakers hoped and is actually chasing customers out of the city.
The study showed that sales of these drinks within the city have fallen by about 55 percent, while sales just outside the Philadelphia city border rose by 38 percent.
The study was done by Catalina, a Florida marketing firm. Although the study was not paid for by any soft drink company, Philadelphia says the results are being overblown.
Philadelphia originally expected to make an extra $46 million by the end of June from the tax, but they fell short by about 15 percent at just $39 million. The extra funds will go toward preschool programs.
No other cities in Pennsylvania so far are planning on adding a similar soda tax.