Newly minted Premier John Hogan says he'll axe controversial sugar tax

Newfoundland and Labrador's newest premier says he's cutting a controversial tax that was meant to deter people from buying sweetened beverages — a move he says is motivated by public concerns about affordability.

The Sugar Sweetened Beverage Tax, also known as the sugar tax, was introduced in 2022 under former premier Andrew Furey. It added 20 cents to the cost of each litre of sugar sweetened beverages. 

In the tax's first year, the provincial government took in $11 million. In a later email to Radio-Canada on Monday, treasury board secretariat spokesperson Janelle Simms said the tax brought in just over $12.5 million in 2023 and a little over an estimated $12 million in 2024.

The announcement to repeal the tax was made on the floor of the House of Assembly by Premier John Hogan on Monday afternoon, during the first sitting of the spring session.

"This is the first official full day on the job, so it'll take a little bit of time to work through legislative and regulatory mechanisms to see how we do it," Hogan told reporters after question period.

He says he already wrote to Finance Minister Siobhan Coady earlier on Monday about repealing the sugar tax, but says she will need time to work with retailers on reversing 

He says he came to the decision during the leadership campaign.

"It was pretty clear throughout the leadership campaign that affordability remains an issue for Newfoundlanders and Labradorians and it's a priority, as I said, of theirs. So it's a priority of our government," said Hogan.

The sugar tax was introduced to encourage consumers to make healthier beverage choices, but Hogan says his announcement isn't a concession the tax wasn't working as intended and defended the impetus of the idea.

"I think we need to continue to focus on healthier choices and healthy living in Newfoundland and Labrador. And premier Furey certainly focused on the well-being of this province as a key component of Health Accord N.L." he said.

Hogan says the provincial government will continue to look at how people of the province can be healthier.

"In the grand scheme of things, we need to continue to look at other options for well-being," he said.

'It's about time,' says Wakeham

Progressive Conservative Leader Tony Wakeham, who has been calling for an end to the sugar tax since its inception, had reiterated his call on the floor of the House of Assembly ahead of Hogan's announcement.

"My first reaction is, it's about time. I've been talking about that tax since it was first introduced as a measure to modify people's behaviours. It hasn't worked," said Wakeham.

"All it has effectively done is take millions of dollars out of the pockets of [the] people of Newfoundland and Labrador."

Wakeham says he would have repealed the tax if his party formed government in the next provincial election, which has to happen by mid-October.

"And now I will be asking the premier when will we pass legislation in this session of the House — while we're sitting here this week or next week — to actually bring in the legislation to make this happen? Or is this simply going to be just another announcement," he said.

Wakeham says he intends to hold the Liberal government accountable.

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