The sugar sweetened beverage tax is being eliminated at a time when affordability is top of mind for many Newfoundlanders and Labradorians. This action, announced in the House of Assembly on May 12, 2025, builds upon the more than $750 million in targeted short- and long-term affordability measures introduced since March 2022, as detailed in the backgrounder below.

Following consultations with wholesalers and retailers to ensure a smooth and effective implementation, the sugar sweetened beverage tax will officially be eliminated on July 1, 2025.

Programs previously funded through the tax – such as the continuous glucose monitoring pilot program, early childhood nutrition supplement, school breakfast and lunch programs, physical activity tax credit, and support for recreation, physical activity, athlete development, and sport development – will continue.

The elimination of the sugar sweetened beverage tax is made possible through amendments to the Revenue Administration Regulations. Additional amendments to the Revenue Administration Act will also be introduced in the House of Assembly to repeal the tax.

For further information and guidance, wholesalers and retailers are encouraged to visit the Department of Finance’s website or contact the Tax Administration Division by calling 1-877-729-6376 or emailing taxadmin@gov.nl.ca.

Quotes
“The cost of living remains a key issue for Newfoundlanders and Labradorians, and addressing affordability is a priority for our government. We will continue to focus on healthier choices and healthy living in Newfoundland and Labrador, while also keeping residents’ everyday expenses in mind.”
Honourable John Hogan, KC
Premier of Newfoundland and Labrador”The Department of Finance has been working with wholesalers and retailers, including convenience stores, to ensure a smooth transition as we eliminate the sugar-sweetened beverage tax effective July 1, 2025. We believe the tax successfully raised awareness and sparked important conversations about the benefits of making healthier beverage choices – without added sugar – for the overall health and well-being of all our residents.”
Honourable Siobhan Coady
Deputy Premier and Minister of Finance

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Learn more
Well-Being Week 2025, September 21–27

BACKGROUNDER

The Provincial Government has announced more than $750 million in targeted short- and long-term measures since March 2022 to help residents with affordability, including:

• No new taxes, tax increases or fee increases for the fourth year.
• The Seniors’ Benefit and its eligibility threshold is being indexed to the consumer price index. This builds on the 15 per cent increase over the last three years. These enhancements will benefit 50,000 seniors aged 65 or older.
• Increased the income Supplement (15 per cent over the last three years). The supplement benefits more than 150,000 families and individuals.
• Increased the child benefit by 300 per cent and increased the nutritional supplement up to age five.
• Lowered child care costs from an average of $40 a day to $10 a day, with more than 11,000 children in $10 a day spaces saving families an estimated $6,300 a year for each child in care.
• 50 per cent reduction on the provincial fuel tax, saving 8.05 cents per litre (including HST).
• 50 per cent reduction off the cost of registering passenger vehicles, trucks and taxis.
• Free driver medicals for people aged 75 and older.
• Elimination of the 15 per cent retail sales tax on home insurance.
• Maintaining the home heating supplement of up to $500 to residents who rely on furnace or stove oil to heat their home.
• Reduced the small business tax rate, introduced new tax credits, and increased the exemption threshold for the health and post-secondary education tax (HAPSET).