ST. JOHN’S, NL – The Canadian Taxpayers Federation is applauding Premier John Hogan for pledging to axe Newfoundland and Labrador’s sugar tax

“The Hogan government is making the right call by scrapping this cash grab,” said Devin Drover, CTF Atlantic Director. “This tax never had anything to do with health, but was just another way for this government to squeeze more money out of struggling families. Axing the sugar tax will save taxpayers millions this year.”

The sugar tax was introduced by former premier Andrew Furey in 2022, slapping a 20 cents per litre tax on drinks with sugar. It was expected to cost taxpayers more than $12 million this year alone.

The CTF has been calling for this tax to be scrapped since day one.

“While this tax cut is a positive step, Hogan must now focus on cutting wasteful spending to avoid piling on more government debt,” said Drover. “This would allow for even more tax relief in the future.”

The provincial government is planning to run a deficit of $371 million in 2025. Total government debt is projected to increase by more than nine per cent this year.

Interest charges on government debt will cost taxpayers $1.2 billion this year, which is about $2,200 per person.