ARTICLE · 12 AUGUST 2025

Newfoundland Sugar Tax Update

Millar Kreklewetz

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We have previously blogged about the enactment of Newfoundland and Labrador's ("Newfoundland") Sugar Sweetened Beverage Tax ("SSBT") in late 2022 here, and provided an update on the SSBT's interaction...

CanadaTax

John Bassindale

We have previously blogged about the enactment of Newfoundland and Labrador's ("Newfoundland") Sugar Sweetened Beverage Tax ("SSBT") in late 2022 here, and provided an update on the SSBT's interaction with the collection of GST/HST here. In just a period of three years, Newfoundland has switched course and recently chosen to effectively eliminate the SSBT through an amendment to the Revenue Administration Regulations (the "Regulations").

SSBT Background

The SSBT had been in force since September 1, 2022, applying tax at differing rates to three categories of products: 1) ready-to-drink beverages; 2) dispensed beverages; and 3) concentrated drink mixtures. Interestingly, the tax levied did not depend on the amount of sugar in the product, with tax instead being levied at amounts ranging between $0.20 per litre and $2.00 per kilogram depending on the type of product in question. Accordingly, two canned soft drinks would be taxed at the same rate even if one

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