In yesterday’s budget, the provincial government revealed they will be applying the provincial sales tax (7%) to carbonated sugary drinks. So what this means is that a $2 can of pop will cost 14 cents more after July 1st.
The government projects the tax will generate $27 million of revenue in 2020, and then $37 million of revenue in 2021.
A 2016 study published in PLoS Medicine suggested that a 10% excise tax on soda "could prevent 189,300 new cases of Type 2 diabetes, 20,400 strokes and heart attacks, and 18,900 deaths among adults 35 to 94 years old" over a ten-year period.
The study also included that "the reductions in diabetes alone could yield savings in projected healthcare costs of $983 million."
A 2017 study in the Journal of Nutrition found a 6.3% reduction in soft drink consumption, with the greatest reductions "among lower-income households, residents living in urban areas, and households with children.
We also found a 16.2% increase in water purchases that was higher in low- and middle-income households, in urban areas, and among households with adults only."
Guest: Claire Allen
CKNW Contributor
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