Controversy rages over upcoming Newfoundland sugar tax
Global News
In September, Newfoundland and Labrador will become the first province in Canada to introduce a special tax on sugary drinks, raising a projected $9 million in annual revenue.
An upcoming provincial tax on soft drinks and other sugary beverages, in Newfoundland and Labrador, has some people applauding and others complaining.
In September, the province will become the first in Canada to introduce a special tax on sugary drinks, raising a projected $9 million in annual revenue.
At the historic Caines Grocery & Deli, in St. John’s, customer Cecil Parsons said life is already too expensive. “I’m not gonna keep buying it if it’s like a fortune to buy a pop, just like gasoline.”
The new tax, which takes effect Sept. 1, will apply an extra twenty cents a litre to a wide range of products, including regular soft drinks, and those with added sugar, like fruit juices, iced-tea and lemonades, along with sweetened sports and energy drinks, and some frozen fruit punches.
Caines owner David Howell said emerging from the pandemic slowdown was already difficult. He’s generally optimistic a strong tourism season will help him recover, but, with inflation already making day-to-day life a desperate struggle for some, he dreads another bump in prices.
“Low-income are primarily the ones, they say, that buy this stuff. And, they’re gonna be hit again. And, small businesses like myself, how much more do we have to incur before the government realizes we’re taxed enough as it is?”
The government says the new tax is about encouraging better habits. From a public health standpoint, it’s receiving much more positive reviews.
“We support the government in prioritizing the health of its citizens, and hope that other jurisdictions take notice and follow suit,” said Ann Besner, manager of research and public policy at Diabetes Canada.
