New York to impose fat tax on Coke and other soft drinks

The Governor of New York State is considering slapping a 15% "obesity tax" on high calorie soft drinks such as Coca Cola in a bid to pay of the state's $15 billion budget deficit.

Some states in the US already have taxes on soft drinks and snacks but the Governor's plans would be the first to distinguish between the diet and 'full fat' versions of products.

Coca Cola and Pepsico, which both have their corporate HQs in New York state, may have something to say about the proposals though.

A spokesman for the American Beverage Association pointed out that although soft drink sales has remained flat, obesity levels were still rising.