Canada's First-Ever Sugar Tax Is Coming To One Province & Here's What Will Cost More

The province of Newfoundland and Labrador will be implementing legislation on sugar-sweetened drinks in Canada, and provincial officials say it's the first decision of its kind in the country.

On Tuesday, October 19, Finance Minister Siobhan Coady announced during a press conference the implementation of a new soft-drink tax in the province that will begin in September 2022.

"The average household in Newfoundland and Labrador spends an estimated 2.8% of its total annual food and beverage expenditures on sugar-sweetened beverages," said Coady. "This is the highest in Canada and twice the Canadian average of 1.4%."

According to officials, the tax will be set at 20 cents per litre, which will be collected at the wholesale level, and it will apply to regular soft drinks, fruit flavoured drinks, sports and energy drinks, pre-packaged milkshakes and coffee beverages, and concentrate mixes.

"Our goal is to encourage residents to switch to healthier beverages resulting in long-term health gains for our province," Coady said.