PHILADELPHIA (AP) — Pepsi is pulling 2-liter bottles and 12-packs of its products from Philadelphia grocery store shelves over the city’s new tax on sweetened drinks.

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The company says it wants to offer products and package sizes working families can better afford.

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The 1.5-cent-per-ounce tax on sweetened and diet beverages is imposed at the distributor level. If fully passed on to the consumer it amounts to $1.44 on a six-pack of 16-ounce bottles.

The company’s decision affects sodas including Pepsi and Mountain Dew and other sweetened drinks like Gatorade and Lipton Iced Tea.

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Democratic Mayor Jim Kenney’s office says the industry was trending toward smaller sizes well before the tax passed.

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Earlier this month, Purchase, New York-based PepsiCo Inc. cited the tax when announcing layoffs of 80 to 100 workers at distribution plants serving Philadelphia.

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