The Solution

A levy will help Canadians reduce their consumption of sugary drinks, protect their health AND provide funding for healthy living initiatives.

Recent polls show that more than 70% of Canadians support a sugary drink tax or levy if revenues were used to support healthy eating initiatives such as the subsidization of vegetables and fruits or a universal school lunch program.

A manufacturers’ levy
for Canada

A manufacturers levy has been shown to be an effective way to reduce consumption because it:

  • Raises the price of sugary drinks, acting as a disincentive to consumers to purchase them
  • Encourages manufacturers to reformulate, making their beverages less harmful
  • Provides a valuable source of revenue for the health care system

The combined benefit of health care savings and revenue from a 20% sugary drinks levy over 25 years is substantial and projected to be over $55 billion. This money can be spent on healthy living initiatives for Canadian families.

Global Case Studies

Jurisdiction Details Outcomes
Mexico 2014 excise tax of 1 peso/ounce average 10% ↓ in sugary drinks purchases
Berkeley 2015 $0.01/ounce tax on sugary drink 10% ↓ in sales of taxed beverages. Sales of water ↑15.6%  and milk 3.5%↑
Finland 2011 with ↑ tax rate each year Sales ↓ in relation to three tax hikes.
France 2012 excise duty on drinks with added sweeteners. Rate ↑over time. ↓ soft drink demand of 3.3% (2012) 3.4% (2013) 15
Hungary

2012 “public health tax” for unhealthy

products (high in fat, sugar and salt). Multi-tiered tax based on sugar content

40% of food/beverage products reformulated to fit into a lower tax bracket. Demand for soft drinks, ↓7.5% (2012), ↓ 6% (2013).