In UK law, manufacturers of soft drinks which contain more than 5g of sugar per 100 ml must pay a levy of 18p a liter, or 24p a liter for sugar over 8g per 100ml. Most manufacturers have passed this cost on to the consumer, causing a surge in prices across most soft drinks. It was hoped that this price increase would decrease the frequency of indulging in these drinks.
Analysing data following a tax levied in Philadelphia, showed that consumption reduced by 31 per cent. A figure which is in line with previous research.
In response Philadelphia residents drive to neighboring towns to get their sugar fix causing a four per cent increase in purchases of other high-sugar goods in the surrounding area.
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