Philadelphia becomes first major U.S. city to impose soda tax

The city of Philadelphia in Pennsylvania has become the first major U.S. city passing a soda tax despite a multimillion-dollar campaign by the beverage industry to block it.

The Philadelphia City Council on Thursday passed with a final vote of 13-4 the new soda tax of 1.5 cents per ounce, which adds approximately 18 cents to a can of soda.

Previously, only Berkeley of California passed a similar soda law in November 2014 with a 1-cent-per-ounce tax on soft drinks. More than 30 U.S. cities and states have failed to pass the soda tax law as it is criticized for disproportionately affecting the poor, who are more likely to consume sugary drinks.

Philadelphia estimates that the new tax will generate 91 million U.S. dollars in revenue annually if fully implemented.

The American Beverage Association (ABA) said the tax is unlawful and it violates Pennsylvania's state Constitution. It vowed to take legal action to repeal the measure.

"The tax passed today is a regressive tax that unfairly singles out beverages -- including low- and no-calorie choices," the ABA said in a statement.

Philadelphia Mayor Jim Kenny, a proponent of the tax, originally proposed a 3-cent-per-ounce soda tax, but the City Council revised the proposal last week to cut the tax rate in half but expand it to include drinks with diet sweeteners.

The measure is believed to contribute to a healthier Philadelphia, where more than three quarters of adults and 40 percent of children are overweight or obese.

However, policy experts question the efficacy of taxing one type of beverage to reduce the rate of obesity or diabetes. According to a recent research by the Tax Policy Center, sugar is not necessarily the only factor affecting the risk for, or consequences of obesity. Endi