Sugar Sweetened Beverage Tax begins September 1, 2022

Following the government of Newfoundland and Labrador’s passage of Bill 29 last fall, Canada’s first per litre sugar sweetened beverage (SSB) tax will come into effect on September 1, 2022. The tax will apply to most sugar sweetened beverages/products used to make sugar sweetened beverages and will be applied at $0.20 per litre. The tax will be primarily collected at the wholesale level and passed through to RCC members, and ultimately customers, as part of the overall price. This is similar to the current model for provincial tobacco and gasoline taxes. However, if an RCC member purchases the SSB product directly from the manufacturer, then the retailer will be responsible for collecting and remitting the tax.

RCC advocacy resulted in a number of improvements to the interpretation of the tax obligations for RCC members. RCC continues to clearly communicate to government officials the costs and administrative challenges that have and will continue to occur for businesses affected by this tax. Details regarding the SSB tax and exempted products, including the Information Circular, Business Forms, and the consumer awareness campaign entitled Rethink your Drink can all be found on the Department of Finance webpage.