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Facts About the Sugar Sweetened Beverage Tax

NOTE TO RETAILERS

Similar to how gasoline and tobacco taxes are collected, the sugar sweetened beverage tax is collected at the wholesale level. The only retailers who would have to remit taxes directly to the Provincial Government are those retailers who purchase from non-registered wholesalers or businesses located outside the province. Guidance for retailers on this, as well as on pricing structure is available here: Information Circular Sugar Sweetened Beverage Tax

Retailers requiring additional support can call 1-877-729-6376 or email taxadmin@gov.nl.ca.

 

Rethink Your Drink: Encouraging healthier beverage choices

Newfoundland and Labrador is a place of boundless beauty and creative culture. And while we are known as some of the happiest people in the country…can we become some of the healthiest too?

Did you know that your government is committed to helping make Newfoundland and Labrador one of the healthiest provinces in Canada by 2031? It’s true. One step we’ve taken to help us get there is the launch of a new awareness campaign that encourages you, and every Newfoundlander and Labradorian, to reflect on your beverage choices, and to Rethink Your Drink. We care about the health of our province and its people, and we hope to inspire you to make healthy choices – beverages without added sugar.

Excess consumption of sugar sweetened beverages can contribute to an increased risk of type 2 diabetes, cardiovascular disease and other related health issues, including poor dental health. Making healthier beverage choices can help reduce the consumption of excess sugars associated with an increased risk of developing chronic diseases.

Check out Canada’s Food Guide to help you make informed choices, and please consider your health and well-being as you Rethink Your Drink!

For more information, please see our news release.

Looking to download marketing materials?

Retailers, community groups, and individuals interested in sharing the Rethink Your Drink message are welcome to download and use the following files for display or online sharing.

Posters

Shelf Talkers for Retail

Sugar Sweetened Beverage Tax

NOTE TO RETAILERS

Similar to how gasoline and tobacco taxes are collected, the sugar sweetened beverage tax is collected at the wholesale level. The only retailers who would have to remit taxes directly to the Provincial Government are those retailers who purchase from non-registered wholesalers or businesses located outside the province. Guidance for retailers on this, as well as on pricing structure is available here: Information Circular Sugar Sweetened Beverage Tax

Retailers requiring additional support can call 1-877-729-6376 or email taxadmin@gov.nl.ca.

The sugar sweetened beverage tax is an initiative that supports the health and wellness of the residents of the province. Sugar sweetened beverages are a major source of sugar in the diet, and the excess consumption of sugar is associated with certain chronic diseases such as type 2 diabetes. The focus of this initiative is to encourage residents of the province to choose beverages without the added sugar.  Encouraging better beverage choices and placing greater emphasis on healthy living is central to achieving better health outcomes.

Effective 12:01 A.M. September 1, 2022, a person who acquires a sugar-sweetened beverage at a retail sale in the province or brings sugar sweetened beverages into the province, as a consumer, must pay sales tax at the rates prescribed as follows:

SUGAR SWEETENED BEVERAGE TYPES TAX RATE

Ready-to-Drink Beverages and Dispensed Beverages

These include ready-to-drink beverages to which the manufacturer has added sugar such as regular soft-drinks, sweetened fruit-flavoured juices, sweetened iced-tea and lemonades, sweetened sports and energy drinks, and dispensed beverages such as sweetened soda fountain drinks, slush drinks and fruit juices.

$0.20 per litre
Concentrated Drink Mixtures

These include frozen concentrated sweetened fruit punches, sweetened flavoured drink crystals and powders, and flavoured syrups to which the manufacturer has added sugar. These also include concentrates used to produce dispensed beverages (e.g. post-mix).

Where the manufacturer provides directions for finished beverage preparation and/or volume:

$0.20 per litre, of beverage that can be produced in accordance with the manufacturer’s directions.

Where the manufacturer does not provide sufficient directions for finished beverage preparation and/or volume:

$0.80 per litre for frozen concentrated juices,
$2.00 per kilogram for flavoured powders, and
$1.20 per litre for syrups.

 

Information Circular (RAA-SSB-2022-12-21)

Registered Sugar Sweetened Beverage Wholesalers

Sugar Sweetened Beverage Wholesaler/Retailer Registration Form

Sugar Sweetened Beverage Retailer Tax Return  This return is only required from retailers who purchase/acquire sugar sweetened beverage products from non-registered wholesalers/ businesses who are located outside of the province

Sugar Sweetened Beverage Wholesaler Tax Return

 

For a copy of the related amendments to the Revenue Administration Tax Act and Regulations please utilize the following links:

Revenue Administration Tax Act
Revenue Administration Regulations

 

For further information, please contact

Department of Finance
Tax Administration Division
Phone Toll Free: 1-877-729-6376
Phone: (709) 729-6297
Fax:  (709) 729-2856
Email: taxadmin@gov.nl.ca
Mail: Confederation Building, P. O. Box 8700, St. John’s, NL A1B 4J6