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Newfoundland and Labrador to End Sugar-Sweetened Beverage Tax After Study Shows 11.6% Sales Decline

Study authors recommend using tax revenue to subsidize healthy food for low-income families

Sugary drinks are seen at a store Wednesday, Dec. 13, 2017 in Montreal. THE CANADIAN PRESS/Ryan Remiorz

Overview

  • The provincial levy, introduced in September 2022, will be repealed on July 1, 2025, following Premier John Hogan’s decision last month
  • Heart and Stroke Foundation–sponsored research tracked per-capita sales and found an 11.6% drop in taxed drink purchases compared with a 6.7% decline in neighbouring Maritime provinces
  • Surveys of more than 1,200 residents before the tax and over 2,000 after showed 24% of respondents were less likely to buy sugary drinks under the levy
  • Progressive Conservative legislators repeatedly criticised the tax for raising living costs and disproportionately impacting lower-income households
  • Authors urge that any future beverage levies direct proceeds toward healthy food subsidies and nutrition programs for disadvantaged families