Free of Sugars, Free of Tax: RCC’s Game-Changing Win
February 25, 2025After two years of relentless advocacy, RCC has won a major update to the province’s Revenue Administration Act as related to the sugar sweetened beverage tax (SSBT). The government now agrees that beverages labelled ‘Free of sugars’ by Health Canada should be exempt from the sugar tax—addressing customer confusion.
Effective February 14, 2025, the following amendments took effect:
- Sugar sweetened beverages that satisfy the definition of ‘Free of sugars’ in Section 37 and 37.1 (Column 2) of Health Canada’s Table of Permitted Nutrient Content Statements and Claims are exempt from the SSBT.
- Kefir beverages are exempt from the SSBT.
- Sugar sweetened beverages that contain 1.1% or more of alcohol by volume (ABV) are exempt from the SSBT. Previously, a trace amount would have been enough to qualify for the exemption. Sugar sweetened beverages with less than 1.1% of ABV will now be taxable.
RCC celebrates this win for its members.
