New York Proposes Soft Drinks Tax

In an effort to boost revenue, New York Governor David Paterson has proposed a sugar tax on full-calorie soft drinks that is expected to generate $815m annually.

An earlier tax proposal, which would have raised $1bn a year, was rejected by the state legislature amid opposition by the beverage industry.

Under the proposal, diet soft drinks will become cheaper while more unhealthy beverages will see a price rise.

New York City Mayor Michael Bloomberg said the proposal will discourage consumption of high-calorie beverages while simultaneously making lower-calorie beverages more affordable.

According to health experts, non-diet soft drinks are a key source of excess calories in the US diet.