The U.S. Food and Drug Administration has approved a proposed new tax on sugary drinks that would add $50 to the price of some high-calorie beverages and raise an additional $1 billion over the next decade.
The new levy, which is expected to hit restaurants and bars beginning in 2019, would apply to sugary beverages and other products made with artificial sweeteners such as those sold in vending machines, sports drinks and energy drinks.
The proposed tax, which would take effect in 2020, is part of a package of proposed tax increases, including a proposal to raise taxes on health insurance plans.
The Treasury Department said it was proposing the levy because of “unresolved concerns about the use of artificial sweetener in soft drinks and other foods.”
In a statement, the FDA said it “considers these new measures to be an important first step toward preventing the use and misuse of artificial and/or artificial sweetened beverages.”
While it said it would consider the additional $50 per soda levy for the proposed 2020 tax increase, it said the FDA had already made its decision.
The FDA said its new rule would raise $1.3 billion in new revenue over the course of the 2020 tax year, about 4 percent of the agency’s total annual budget.
In its statement, FDA said the new tax would not apply to products made in China, which the agency said was the largest market for the products.
The agency said it had “not determined the exact amount of tax” it would impose on the industry, which includes brands including PepsiCo and Coca-Cola.