Newfoundland and Labrador's tax on sugary drinks takes effect

A new tax on sugary drinks sold in Newfoundland and Labrador has come into effect.

The province's sugar sweetened beverage tax — which adds 20 cents per litre to the cost of soft drinks, as well as sweetened fruit-flavoured juices, iced teas, lemonades, sports and energy drinks, fountain sodas and slushies — is in place as of Thursday.

The charge also applies to concentrates, at a cost of 20 cents per litre that can be made after mixing, and will be charged on top of the provincial sales tax.

The province announced the new tax as part of its budget last year, and released further details in October 2021.

Officials have said the aim is to improve the health of residents and make the province one of Canada's healthiest by 2031.

The provincial government has since launched an awareness campaign called Rethink Your Drink in an effort to encourage residents to make "healthier beverage choices."

"Encouraging Newfoundlanders and Labradorians to make healthier beverage choices is the key message in our 'Rethink Your Drink' awareness campaign," Deputy Premier and Finance Minister Siobhan Coady said in a statement Aug. 11.

"We chose this slogan because we hope it will come to mind when you reach for a beverage. We encourage everyone to consider how you may be able to choose healthier beverages without added sugar for you and your family."

The tax is expected to bring in about $9 million a year, which will be used to help fund the province's prenatal infant nutrition supplement — a benefit for pregnant mothers and families with children under the age of one — school breakfast and lunch programs, and Newfoundland's physical activity tax credit.

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Certain drinks are excluded from the tax such as alcoholic beverages, chocolate milk, diet drinks with artificial sweeteners, infant formula, yogurt drinks and meal replacement beverages.

With files from CTV News Atlantic and The Canadian Press