OTTAWA: Finance Department had quietly tested how Canadians react to the idea of a tax on sugary drinks in the fall of last year, new documents show.
Finance contracted a private firm to do some focus group testing back in the fall, and its final report, recently made public, shows that some Canadians are concerned about obesity rates and support the policy, while others think it would just be a “tax grab.”
“Many were in favour of the tax, fully recognizing that there is obesity and that it could help alleviate pressure on the healthcare system over time. Those less in favour were not convinced that a tax would discourage consumption and were more likely to view the measure as a tax grab.” “None of the participants recognized that lower-income consumers would be paying more of this tax in proportion to their income,” the new report added. “Many also agreed that, in addition to a tax, other measures, such as health education, were needed to dissuade Canadians, especially youth, from consuming sugary drinks. Some also felt that for such a tax to have a meaningful dissuasive effect, it would need to be high enough for consumers to notice.” But the Canadian Beverage Association warned against implementing such a tax.
The association’s president Jim Goetz told the finance committee in the fall that his industry is worried about other policy measures the Liberals are pursuing — costs from front-of-pack labelling and Bill S-228, which would restrict unhealthy food marketing to children — along with concerns over the speculation surrounding a sugary drink tax.
