As Canada’s only ‘sugar tax’ ends, a study suggests it may have been effective

A new study suggests Newfoundland and Labrador’s tax on sugar-sweetened drinks may have dissuaded people from buying and drinking the beverages.

The study tracked beverage sales in the province before and after the so-called “sugar tax” was implemented in September 2022. The Heart and Stroke Foundation of Canada sponsored the study.

It says per-capita sales of sugar-sweetened drinks declined by 11.6 per cent in Newfoundland and Labrador after the tax came into effect, compared with a 6.7 per cent drop in the Maritimes, where there was no levy.

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The researchers also surveyed more than 1,200 people before the tax and more than 2,000 people after and found 24 per cent of respondents said they were less likely to buy sugary drinks.

The sugar tax became a frequent sticking point in the provincial legislature, with the Opposition Progressive Conservatives calling repeatedly for its repeal.

Liberal premier John Hogan announced last month the government would repeal the tax on July 1.

Study co-author Rachel Prowse says she’d like the province to reconsider that decision.

“I think that it was premature to remove the tax based on public opinion, because I haven’t seen any information that an evaluation was done,” the assistant professor at Memorial University in St. John’s, N.L., said in an interview.

“They could really be sitting as a leader for health in Canada at this time.”

This report by The Canadian Press was first published June 18, 2025.