Philadelphia becomes first big US city to tax soda

Philadelphia on Thursday became the first major US city to vote to tax sugary drinks, fighting off a multi-million dollar challenge from the beverage industry.

At about 50 cents per liter, the tax will apply to all soft drinks, including low calorie beverages. The only exceptions are for drinks comprised of at least 50 percent milk or fresh fruit.

Berkeley, California, with a population of about 120,000 residents, is the only other large town in America to tax soft drinks.

Philadelphia's city council approved the tax on Thursday, after months of deliberation. It is set to go into effect in January.

Supporters say the measure will improve the health of the 1.5 million people who live in Philadelphia, America's fifth largest city.

More than 68 percent of the city's adults and 41 percent of children are overweight or obese.

Opponents say it will have a catastrophic effect on small businesses, forcing some to go under if their customers leave town to stock up elsewhere.

Dozens of attempts to pass similar legislation in other US cities have failed. The consumption of sugary and fizzy drinks has been steadily falling in the United States over the last 11 years.