Research by the University of Waterloo commissioned by leading health organizations reveals an excise levy on companies that produce sugary drinks would go far in reducing death, disability, and health care costs. This adds to the growing body of international evidence that supports the health and economic benefits of a sugary drink levy.
In 2022 the Government of Newfoundland and Labrador introduced a tax on sugary drinks with the goal of encouraging residents to make healthier beverage choices. This initiative aligned with recommendations from the World Health Organization, the Canadian Healthy Eating Strategy, Canada’s Food Guide and the position statement from the Canadian Paediatric Society which was supported by the Dietitians of Canada, the Childhood Healthy Living Foundation (formerly the Childhood Obesity Foundation), Diabetes Canada, and the Heart and Stroke Foundation of Canada.
The revenue from the tax was used to fund healthy living initiatives.
In 2025 the Government of Newfoundland and Labrador repealed the tax.
A study, sponsored by the Heart and Stroke Foundation of Canada, evaluated the impact of the sugary drink tax in Newfoundland and Labrador on pricing, marketing, sales and consumption. The study can be found here.
The World Health Organization released their first-ever global tax manual for sugar-sweetened beverages (SSBs). The WHO manual highlights the experiences of countries who have successfully implemented the tax, including Mexico, South Africa, and the United Kingdom.
