Heart & Stroke is concerned by the Government of Newfoundland and Labrador’s decision to repeal the tax on sugar sweetened beverages in the province. The revenue from the tax is earmarked to fund healthy-living initiatives, leaving questions about the immediate and lasting impact of this decision.
“What happens to the school breakfast and lunch programs or the prenatal nutrition supplements if this funding disappears?” says Katie Greene, senior vice president, Heart & Stroke, Newfoundland. “The families benefitting from those programs face affordability challenges too.”
Global research consistently shows a tax on sugary drinks is an effective way to decrease consumption, promote health and save money for the health care system. Heart & Stroke recommends this approach as part of a multi-pronged strategy to make it easier to make healthier drink choices.
"Newfoundlanders and Labradorians experience some of the worst health outcomes in Canada,” says Dr. Rachel Prowse, assistant professor at Memorial University and co-author of a soon-to-be release evaluation of Newfoundland’s tax funded by Heart & Stroke. “The sugar sweetened beverage tax was a health promoting policy expected to positively impact dental health and diet-related diseases over time. A repeal of the tax, and its loss of revenue, is also a loss for the health of Newfoundlanders and Labradorians."
The tax — which adds just seven cents to a tin of pop —was enough to decrease sales of taxed beverages in Newfoundland, one year after it was introduced according to the report. “But in terms of affordability, the sugar sweetened beverage tax is not the biggest challenge people in the province are facing,” added Dr. Scott Harding, Associate professor at Memorial University and co-author of the report.
This policy was a bold step toward better health outcomes. Walking it back raises real concerns about the impact on the health of people in Newfoundland and Labrador, adds Greene. “So, the question remains: who really benefits from this decision, and at what cost to the health and well-being of our communities?”
Heart & Stroke is asking the Government to reconsider the decision and to continue to invest in healthy-living initiatives.
Fast facts:
- Between 2016 to 2041, it is estimated that sugary drink consumption will be responsible for 63,000 deaths, 300,000 cases of ischemic heart disease, and almost 40,000 strokes, and will directly cost the Canadian healthcare system more than $50 billion.
- There is growing momentum and action on sugary drink taxes across the world, for example, taxes have helped decrease sugary drink consumption in Mexico and reduced the amount of sugar in sugary drinks in the United Kingdom.
- In Canada, Newfoundland and Labrador led the way in 2022 as the first province to impose a sugary drink tax on ready-to-drink beverages containing added sugars as well as on sugar-sweetened fountain drinks and concentrated drink mixes.
- The Government stated revenue from the tax would be used to fund its glucose-monitoring pilot program, physical activity tax credit, healthy living initiatives such as the pre-natal infant nutrition supplement, school breakfast and lunch programs and support for recreation, physical activity, athletic and sport development.
- As of 2023, there were approximately 117 countries and territories that had already introduced levies on sugary drinks, covering 57% of the global population.
About Heart & Stroke
Life. We don’t want you to miss it. That’s why Heart & Stroke has been leading the fight to beat heart disease and stroke for more than 70 years. We must generate the next medical breakthroughs, so Canadians don’t miss out on precious moments. Together, with the generous support of our donors, partners and volunteers we are working to prevent disease, save lives and promote recovery through research, health promotion and public policy. Heartandstroke.ca @HeartandStroke
Contact information
Averie Hunt
Communications Advisor
647-426-6864
Averie.Hunt@heartandstroke.ca