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What are the implications of a sugar-sweetened beverage tax in Newfoundland and Labrador?

 

Memorial University’s Faculty of Business professor, Tom Cooper,  studied the economic effects of a tax and concluded, “The implications to business and the economy with the implementation of the tax will be significant with risks emerging around:

  • human resources reduction (e.g., layoffs),

  • business model feasibility (e.g., some businesses shutting down),

  • logistics (e.g., shipments to smaller rural communities)

  • as well as significant compliance and operational costs.

There is also the potential for a ‘doom loop’ to the soft drink manufacturing and distributing industry – a feedback loop which means each action makes the situation worse for the industry – leading to even more risk for the overall Newfoundland and Labrador economy.”

Read the full report here:

CBA – Final Report – Sugar-Sweetened Beverage Proposed Tax – Business and Economic Implications

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