Many countries have implemented taxes on sugary drinks to reduce consumption. AnnaGrummon, discusses the latest research on these taxes.
. This is why it's no surprise that policymakers have sought policy solutions to address consumption of sugary drinks. One policy that's become increasingly popular in recent years is sugary drink taxes.
These studies found that the implementation of the Philadelphia beverage tax resulted in a reduction in sales of taxed beverages in Philadelphia from 22% to as high as, depending on the study. This is a substantial reduction in sales of these beverages, much larger than we see from interventions like educational campaigns, so it's substantial.
You might wonder where the revenue from the beverage tax is allocated. In the most recent fiscal year, 2020 to 2021, the beverage tax raised about $77 million in revenue. As part of the campaign to pass the beverage tax, the city committed to allocating a large portion of that revenue toward funding universal pre-K. This increased the popularity and the policy support for the tax that we see in the city.
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