Eight years after a soda tax brought an added charge to Philadelphia's sugary drinks, the city will hold a series of hearings to discuss its impact on local businesses and consumers.
City Council unanimously approved a resolution from Councilmember Jim Harrity (D-At-Large) on Thursday calling for the Committee on Labor to revisit the Sugar-Sweetened Beverage Tax that was implemented in January 2017. Harrity's office did not have specific dates for the meetings but said they would take place in the next few months.
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The 1.5 cents-per-ounce charge on drinks like soda, juice, sweetened coffee and tea was lauded by former Mayor Jim Kenney and supporters as a way to fund schools and other initiatives while also helping prevent obesity, diabetes and other health issues.
Harrity did not directly call for the law to be changed, but he said the beverage and grocery industries believe the tax has led to job losses, decreases in sales and a cost increase for buyers.
"The Sugar-Sweetened Beverage Tax disproportionately impacts low-income communities and households as a 'poor tax' for people who cannot afford a vehicle or cannot afford to leave the city to go buy their soda like the rest of the community," Harrity said. "The people in food deserts who cannot buy their drinks and groceries in the suburbs end up paying most of the beverage tax cost."
The resolution also said that Teamsters Local 830, a union for beverage industry workers, reported a 43% decrease of sweetened drink sales within the city but a 20% increase in sales within a 5-mile radius of Philadelphia's border.
An analysis of five cities with sugary beverage taxes published in JAMA Network in January 2024 found that Philly had the largest increase in sugary drink prices and the largest decrease in sales. Sales dropped 33% on average in all five cities but fell 46.8% in Philadelphia.
As for the health benefits linked to the tax, a November 2024 study from Penn Medicine found that the average body mass index of Philadelphians rose at a slower rate than those outside the city during the first three years after it was implemented. The findings suggested "limited evidence" of slowing obesity over that time.
