Today, the Government of Newfoundland and Labrador is introducing amendments to the Revenue Administration Act regarding sugar sweetened beverages. This proposed legislation is just one of several initiatives that would support the health and wellness of residents of the province.

The Government of Newfoundland and Labrador has set the ambitious goal of becoming one of the healthiest provinces in Canada by 2031. Creating a culture that places greater emphasis on healthy living is central to achieving better health outcomes. The focus is of the proposed legislation is on encouraging residents to make healthier beverage choices – without the added sugar.

The Government of Newfoundland and Labrador is committed to helping avoid future demands on the health care system by reducing the consumption of excess sugars associated with certain chronic diseases, such as sugar-related diabetes.

While Newfoundland and Labrador is the first province in Canada to specifically target sugar sweetened beverages, there are more than 50 jurisdictions worldwide that have done so to improve health outcomes.

If the legislation is passed, effective September 1, 2022, a rate of $0.20 per litre will be collected at the wholesale level. This is similar to the model currently used for the provincial gasoline and tobacco taxes. An overview of the proposed amendments to the Revenue Administration Act can be found in the backgrounder below.

Making better beverage choices is just one of several initiatives that will support the health and wellness of our population. Other initiatives announced in Budget 2021 include:

• A Physical Activity Tax Credit, which will provide a refundable tax credit up to $2,000 per family. This is a helpful incentive for families as they look to access sport and recreational activities.
• More than $1 million for continued support of the Kids Eat Smart Foundation, which supports the education, health, and well-being of school-aged children through nutrition.
• Approximately $500,000 in new funding for the Mother Baby Nutrition Supplement, which will increase the monthly support for nutritional food during pregnancy and infancy to $100 – up from $60 per month.
• $3.3 million for the expanded Insulin Pump Program.
• $1.8 million to prevent and reduce tobacco and vaping use.

Quotes
“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.”
Honourable Siobhan Coady
Deputy Premier and Minister of Finance

“Our organization has long supported a sugary drinks tax as one mechanism to help address the social determinants of health and are delighted to see Newfoundland and Labrador step forward as a Canadian leader on this issue. As the budget noted, Newfoundland and Labrador residents are living with high levels of chronic disease. Diseases such as heart disease, type 2 diabetes and cancer lead to health challenges across the lifespan, increased demands on the healthcare system – including increasing the risk of severe illness from infectious diseases such as COVID-19 – and have a disproportionate impact on marginalized communities.”
Mary Ann Butt
Senior Vice President, NL, NS, and PEI
Heart and Stroke Foundation

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Media contacts
Diana Quinton
Finance
709-729-2477
dianaquinton@gov.nl.ca

Serge Breton
Senior Manager, Brand and Communications, Quebec and Atlantic
Heart and Stroke Foundation
514-871-8038 x 20258
serge.breton@coeuretavc.ca

BACKGROUNDER

Information on Proposed Amendments to the Revenue Administration Act

If passed, amendments to the Revenue Administration Act regarding the tax on sugar sweetened beverages would be effective on September 1, 2022 at a rate of $0.20 per litre.

Applies to beverages with added sugars, including:

• Regular soft drinks,
• Fruit-flavoured juices,
• Sports and energy drinks,
• Pre-packaged milkshakes and coffee beverages, and
• Concentrated mixtures, such as frozen concentrated juices, flavoured powders and syrups.

Does not apply to the following beverages:

• Beverages sweetened with non-caloric sweeteners (i.e., diet beverages are not taxable given they contain no added sugar),
• 100 per cent natural fruit and/or vegetable juices,
• Alcohol and alcohol beverages,
• Medical or therapeutic beverages, such as infant formula and nutritional meal replacement beverages,
• Milk and fortified plant-based milks and yogurt beverages,
• Ingredients primarily intended to be used in cooking or food preparation,
• Beverages prepared for the consumer at the point of sale, such as tea and coffee beverages,
• Beverages packaged in containers holding less than 75 ml, or
• Beverages brought into the province by a consumer in a total quantity of less than 5 litres.

Will be collected at the wholesale level. This is similar to the model currently used for the provincial gasoline and tobacco taxes.