Canada: New “sweetened beverage tax” enacted (Newfoundland and Labrador)

The tax adds 20 cents to every litre of sugar sweetened beverages.

Newfoundland and Labrador

There is a new “sweetened beverage tax” in Newfoundland and Labrador.

The tax adds 20 cents to every litre of sugar-sweetened beverages as of 1 September 2022.

The new law requires wholesalers that sell these drinks to issue invoices that contain specific details (which the province is expected to outline soon). As a result, certain wholesalers and retailers in Newfoundland and Labrador may need to update their systems because of the new tax obligations.

The legislative measures outline:

  • When the sweetened beverage tax is payable
  • What beverages are exempt from the tax
  • Rules for imports of sugar-sweetened beverages into the province
  • Rules for those that must collect and remit the sweetened beverage tax and the deadlines for remitting the tax

Read a December 2021 report prepared by the KPMG member firm in Canada

 

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