Sweetened Beverages Excise Tax Passthrough Rates: A Case Study in Philadelphia. Issue 4 (2nd October 2018)

• Record Type: Journal Article
• Authors: Coary, Sean P.; Baskin, Ernest
• Is Part Of: Journal of international food & agribusiness marketing. Volume 30:Issue 4(2018)
• Page Start: 382
• Page End: 391
• Publication Date: 2018-10-02
• Subjects: Excise tax -- passthrough -- sweetened beverage tax -- soda tax; Food supply -- Periodicals; Food -- Marketing -- Periodicals; Food industry and trade -- Periodicals; 338.10688
• DOI: 10.1080/08974438.2018.1449696
• Languages: English
• ISSNs: 0897-4438

Abstract

ABSTRACT: A 1.5 cent per ounce excise tax was implemented on all sweetened beverages (SBs) in Philadelphia County on January 1, 2017 at the distributor level. As the tax is on the distributor, retailers must determine the passthrough rate of this tax to the shelf price for SBs as well as determine the prices for SB substitutes. This paper investigates the pricing of SBs and their substitutes at retailers both inside and outside of Philadelphia County. Results suggest a 100% excise tax passthrough rate on SBs with almost no price change on substitute products.