EN FR

Newfoundland and Labrador wrong to impose sugar tax grab

Author: Franco Terrazzano 2021/10/19

The Canadian Taxpayers Federation slammed the government of Newfoundland and Labrador for introducing a sugary drink tax rather than reining in overspending. 

“The sugar tax is a money grab, it won’t make Canadians thinner, but it will fatten government coffers,” said Franco Terrazzano, Federal Director with the CTF. “Newfoundland and Labrador needs to tackle its debt problem, but that means reining in the massive government overspending, not reaching further into taxpayers’ pockets.”

The government of Newfoundland and Labrador announced a sugar tax that will increase prices on drinks with added sugars by 20 cents a litre beginning in September 2022. The tax is expected to cost taxpayers $9 million a year.

The CTF is calling on the provincial government to reduce spending rather than impose a sugar tax. Newfoundland and Labrador has the highest per person provincial government spending in Canada, accordingto the premier’s economic recovery team. 

“If Newfoundland and Labrador’s per capita program spending was in line with the average of other provinces, program expenses would have been $1.18 billion less in 2019-20,” according to the report. “Newfoundland and Labrador has had the highest per capita revenues of any province for 12 of the last 13 years. This should have given the province the fiscal capacity to deliver top quality public services.”

Evidence from countries that have imposed food and drink taxes, including the United States, Mexico, France, Hungary and Denmark shows no discernible improvement in obesity rates or Body Mass Index. 

“The evidence is clear: sugar taxes don’t improve health, they just increase the cost of living,” said Terrazzano. “Politicians need to look in the mirror and cut the fat on their budget rather than going after taxpayers for more money.”


A Note for our Readers:

Is Canada Off Track?

Canada has problems. You see them at gas station. You see them at the grocery store. You see them on your taxes.

Is anyone listening to you to find out where you think Canada’s off track and what you think we could do to make things better?

You can tell us what you think by filling out the survey

Join now to get the Taxpayer newsletter

Franco Terrazzano
Federal Director at
Canadian Taxpayers
Federation

Join now to get the Taxpayer newsletter

Hey, it’s Franco.

Did you know that you can get the inside scoop right from my notebook each week? I’ll share hilarious and infuriating stories the media usually misses with you every week so you can hold politicians accountable.

You can sign up for the Taxpayer Update Newsletter now

Looks good!
Please enter a valid email address

We take data security and privacy seriously. Your information will be kept safe.

<