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.”