St. John's 
Newfoundland & Labrador has set an ambitious goal of becoming Canada’s healthiest provinces by 2031 and to that end, the government wants to tax soft drinks and other sugary drinks.
Credit: Franki Chamaki/ Unsplash
The Furey government today announced the details of the tax introduced in Budget 2021 regarding sugar-sweetened beverages and several other initiatives including a Physical Activity Tax Credit.
The 20 cent per litre sugar-sweetened beverage tax will be implemented effective September 1, 2022. The government says the rate of $0.20 per litre will be collected at the wholesale level and this is similar to the model currently used for the provincial gasoline and tobacco taxes.
The government says chocolate milk and diet drinks with artificial sweeteners, 100 per cent natural fruit and vegetable juices are exempt from the tax.
The tax included in the shelf price will apply to most bottled soda, slushies, energy drinks, concentrated juices, syrups and other drinks sweetened with sugar, corn syrup, fructose and agave nectar.
Deputy Premier and Minister of Finance Siobhan Coady said, “Helping people make better beverage choices without the added sugar and placing greater emphasis on healthy living is central to achieving better health outcomes. The average household in Newfoundland and Labrador spends an estimated 2.8 per cent of its total annual food and beverage expenditures on sugar sweetened beverages. This is the highest in Canada, and twice the Canadian average of 1.4 percent. Our goal is to encourage residents to switch to healthier beverages, resulting in long-term health gains for our province.”
Budget 2021 also includes a Physical Activity Tax Credit, which will provide a refundable tax credit of up to $2,000 per family. The government says the credit, estimated at $7 million will be a helpful incentive for families engaging in sport and recreational activities in addition to supporting the local health and wellness industry.
