An announcement by the new premier of Newfoundland and Labrador on May 12, 2025 could end a contentious sugar levy.  

PM John Hagen said he’d push to nix the Sugar Sweetened Beverage Tax, to alleviate the cost of living.

The provincial tax has been operational beginning September 2022, generating at least C$11 million ($7.87 million) annually.

According to the governmental website, the basic charge is C$0.20 ($0.14) a liter for diluted sugary drinks. These include pops, sweetened iced tea, lemonades and colored fruit juices.

Surcharges for concentrated drinks vary, with flavored powders eliciting as much as C$2 ($1.43) per kg.

Levies on frozen fruit concentrates at C$0.80 ($0.57)/liter and on syrup at C$1.20 ($0.86) all aim to reduce purchases and promote health.

So sensitive are provincial health concerns that Hagen traded off the sugar tax removal with a shingles vaccinations’ promise. 

The vaccine prevents a painful rash in adults 50 and older and minimizes chances of contracting heart disease. 

For now, it will take the legislature to repeal the tax, an easy task as the opposition backs the idea.

One vocal critic of the tax is the head of the Progressive Conservative party, Tony Wakeman, who is agitating its repeal. 

He says that the levy has not worked but has instead taken millions of dollars from locals amid hiking prices. 

Indeed, in revenue collection terms, the sugar levy in Newfoundland and Labrador has exceeded its original intent of C$9 million ($6.44 million) a year. And as the following statistics show, northeast Canada loves its sugar, hence the ease of minting revenue. 

Newfoundland and Labrador Sugar Levy Statistics 

Since September 2022, the Newfoundland and Labrador (NL) sugar tax has generated revenue above a C$9-million ($6.44 million) yearly target. As the first levy for sweetened drinks in Canada, it seeks to cut excessive refined sugar consumption at the provincial level. NL utilizes 2.8% of its food/drink budget on sugary beverages per year, above Canada’s average 1.4%.  

How was sweetened beverage usage in NL before the tax?  

BMC Public Health shows that before the tax, 57.3% of adults in NL consumed sugary drinks each week. This was even as 23.2% drank healthy drinks, like milk, in the same timeline. 

How prevalent are lifestyle diseases in NL? 

Data by BMC Public Health reveals that Newfoundland and Labrador had 35.7% overweight population while 42.2% was obese, as of 2022. The province also spent the most expenditure on healthcare nationally.