The state governor of New York has said an 18% sales tax on non-diet soft drinks should be imposed to help fight obesity.
Funds raised by the tax would be used in the healthcare sector, David Paterson said, while it would also discourage unhealthy consumption habits.
Budget director Laura Anglin said the tax would be targeted at fruit drinks that contain less than 70% of natural fruit juice, along with sodas and soft drinks that are not of the diet variety.
The tax would have to be approved by the state assembly. If approved, it will be the first in the US to distinguish between sugared soft drinks and artificially-sweetened ones.
Senior vice president of public affairs at the American Beverage Association Kevin Keane said: “We think that everybody has to keep in mind that we’re in a recession, and in an economy like this, the last thing we should be doing is raising taxes on everyday needs like clothing and groceries.
“That doesn’t wash with the consumer.
“This has the potential to affect the consumer’s checkbook, as well as paychecks. Every time you raise taxes on an industry’s product, you put jobs at risk. It’s a double whammy.”
In the UK, Coca-Cola said it is going to launch Schweppes Abbey Well, a mineral water, in 2009.
