The GNWT held a public consultation about the proposed sugar-sweetened drinks tax in Yellowknife on Tuesday evening.

Similar sessions were held in Inuvik and Tuktoyaktuk earlier in the week, which along with an , aim to collect the publicSA国际影视传媒檚 input on the proposed tax. In the the government committed to investigate introducing the tax to reduce sugar consumption and improve public health.

Sugar consumption is linked to obesity, diabetes and poor oral health, said Kelly Bluck, director of fiscal policy at the department of finance in her opening remarks.

SA国际影视传媒淭he health department has pointed out that obesity itself is linked to diabetes, cardiovascular diseases and some forms of cancer,SA国际影视传媒� said Bluck.

Ten percent of hospitalizations in the Northwest Territories are related to diabetes, while the number one cause of hospitalizations for children under the age of five is oral health problems, she said.

Because of that, the health department is looking into the way the tax system can be used to discourage sugar consumption in the NWT and is working with the department of finance to do so.
The proposed tax would be on all sugar-sweetened drinks including non-diet carbonated drinks, ready-to-drink sweetened coffee and tea, energy drinks, sports drinks and fruit drinks with less than 100 per cent fruit juice. However, fountain drinks mixed with alcohol served at bars and restaurants would be exempt as well as 100 per cent fruit juices and flavoured milk and yogurt drinks.

SA国际影视传媒淚n some of our areas of course fruit juices are considered a food with nutrient value that we wouldnSA国际影视传媒檛 want to sacrifice because of the sugar,SA国际影视传媒� said Bluck. SA国际影视传媒淭he health department tells us they really donSA国际影视传媒檛 have evidence whether diet carbonated drinks have long-term health effects and therefore, we would not be taxing them.SA国际影视传媒�

In order for the tax to be effective, it would have to be high and visible to consumers, said Bluck.

SA国际影视传媒淲e know that taxes provide a price incentive,SA国际影视传媒� she said. SA国际影视传媒淲hat we donSA国际影视传媒檛 know is really how much of a price incentive it would provide up here.SA国际影视传媒� Bluck pointed out that a 20 percent price increase in Yellowknife is only about a six or seven percent increase in more northern communities where food prices are already some of the highest in Canada. The proposed tax for drinks in pre-packaged containers are five cents per 100 mL or 50 cents per litre, while fountain drinks will be taxed at a flat rate depending on cup size, and range from 10 cents for less than 250 ml to 45 cents for drinks over 750 ml.

Under the Consitution, provinces and territories only have the authority to impose direct taxes on consumers, meaning they cannot levy the tax at the producer or importer level, but the federal government can.

SA国际影视传媒淲hich means thereSA国际影视传媒檚 going to be a big impact on business because theySA国际影视传媒檙e going to have to be administering this tax,SA国际影视传媒� said Bluck, which has been taken into consideration.

The effectiveness of the tax would be measured by how much consumers reduce their consumption of sugar-sweetened drinks. But even if the tax were implemented, measuring its effectiveness in the Northwest Territories would be difficult due to the lack of reliable existing data about consumption.

SA国际影视传媒淢any sugar-based beverage taxes are recent, and there is not enough data to determine effectiveness; a long-term trend is also difficult to determine because of different factors affecting results,SA国际影视传媒� a slide from the governmentSA国际影视传媒檚 tax proposal presentation states.

Marnie Bell from the NWT and Nunavut Public Health Association said she didnSA国际影视传媒檛 believe the tax alone will achieve the desired outcome.

Bell acknowledged that a lot of major health organizations such as the Heart and Stroke Canada, Canadian Diabetes Association, Childhood Obesity Foundation and the Canadian Cancer Society support the tax on sugar-sweetened beverages, and have even lobbied the federal government in favour of it.

SA国际影视传媒淗owever I think itSA国际影视传媒檚 really important to note that all of these organizations believe that the taxation will generate revenue that can be diverted to healthy living initiatives such as subsidizing vegetables and fruits to make them more affordable, ensuring that thereSA国际影视传媒檚 access to safe drinking water, ensuring that thereSA国际影视传媒檚 a consistent and affordable milk supply in our Indigenous communities, providing healthy school lunches, introducing public education not just about nutrition but food literacy -- how to read labels, and food preparations and implementing physical activity programs as well,SA国际影视传媒� she said.

Bell said the association is concerned that the government will not generate enough revenue on this tax to fund any of these kinds of programs. The current ballpark estimate for the tax revenue is $2.6 million said Bluck.

SA国际影视传媒淲eSA国际影视传媒檝e taken a look at what we think is the consumption from our different companies about, we took consumption of containers, we compared it to our deposits, we looked at some of the StatsCan data, we looked at Senate data and then we doubled it for what we think fountain drinks will be, because we also want those to be taxed as well,SA国际影视传媒� Bluck explained. SA国际影视传媒淭hat is what we would call the gross amount from what we think the consumption is right now, times the tax. But then if we apply some kind of price elasticity then the tax comes down, and it might go as low as $2.1 million from that ballpark.SA国际影视传媒�

However, the  about the proposed tax states, SA国际影视传媒淎lthough the tax will increase government revenues, the high administration required to implement this tax means this tax is not an effective tax to generate revenues.SA国际影视传媒�

Bell also pointed out the fact that obesity is not caused by sugar consumption alone but is influenced by a variety of environmental, economic and socio-cultural factors.

SA国际影视传媒淪o the message is, addressing such an issue is very complex, and I donSA国际影视传媒檛 think taxation, in and of itself without trying to tackle the other issues that are facing people in the North, would be effective,SA国际影视传媒� said Bell.
Food security, affordability and accessibility are already issues in the Northwest Territories, less so in Yellowknife than in the communities, and several people at the public consultation felt the proposed tax would only exacerbate that problem. And while many may cite the reduction of tobacco use in recent years as an example that taxation works, not only taxation was used to achieve that, said Bell. Public awareness and education campaigns over several years and the implementation of smoking bylaws helped create that change slowly over time. ItSA国际影视传媒檚 worth noting that nationally, tobacco use still contributes to over 50 percent of total healthcare costs, with a price tag of $5.9 billion.

SA国际影视传媒淭axation is only one tool. We need to have taxation as part of a broader strategy if it comes into play at all,SA国际影视传媒� said Bell.

Jim Goetz from the Canadian Beverage Association agreed with BellSA国际影视传媒檚 statement that taxation isnSA国际影视传媒檛 the answer. Goetz was representing the national association as well as local companies like Yellowknife Beverages and Territorial Beverages.

SA国际影视传媒淸These local businesses] recognize along with our association that obesity is obviously a problem and the issues that are associated with obesity are a problem, not just in the Northwest Territories but in Canada,SA国际影视传媒� said Goetz.
The association worked with the territory to create its Balanced Choices NWT campaign. The SA国际影视传媒減oint of sale campaignSA国际影视传媒� promotes public education by posting health information decals in stores in five Indigenous dialects as well as English. Goetz cited StatsCan data stating SA国际影视传媒淐anadians get two percent of their calories from beverages, and when we talk about calories we are talking about sugar because thatSA国际影视传媒檚 generally where calories come from in beverages.SA国际影视传媒� Targeting such a small portion of calories with a tax is not going to tip the scale in terms of obesity, he said. SA国际影视传媒淯nfortunately obesity rates are still increasing, but this is going to be onerous on businesses, on citizens [and] itSA国际影视传媒檚 not going to raise a lot of revenue by the governmentSA国际影视传媒檚 own recognition.SA国际影视传媒�

Territorial Beverages owner Terra Pagonis echoed that sentiment.

SA国际影视传媒淲e think that the cost of living here in the NWT and doing business here is already expensive enough and thatSA国际影视传媒檚 why we support education and not taxation,SA国际影视传媒� said Pagonis.

Karen Boyd, regional executive director for Dietitians of Canada supported the tax saying it could work, especially when combined with other policies.

SA国际影视传媒淎s dietitians, we see the health effects of consuming excess sugar, fat and salt combined with sedentary lifestyles and the resulting obesity and chronic diseases,SA国际影视传媒� said Boyd.
Often these people were not given the opportunity to develop healthy habits and lifestyles in childhood, she said. Boyd argued that the tax has been effective where it has been implemented, but said SA国际影视传媒渃urrent researchSA国际影视传媒� suggests a tax of at least 20 per cent of retail price is required to make a substantial difference in purchasing decisions.

SA国际影视传媒淭o be effective in the longterm, a tax must be implemented as part of a comprehensive approach that includes multiple strategies such as limiting the availability of sugary drinks in schools and other publicly funded institutions,SA国际影视传媒� she said.

Although the tax is being offered as a potential solution to a public health issue, only representatives from the department of finance were present at the public consultation on Tuesday evening.

SA国际影视传媒淲hat we really wanted to hear was what the public thinks about it and you donSA国际影视传媒檛 need to have a bunch of bureaucrats telling you this is what the problem is,SA国际影视传媒� said Bluck.

SA国际影视传媒淚t should be pretty straightforward, and it is. We have sugar consumption we know itSA国际影视传媒檚 linked to obesity and bad oral health. We know that obesity is linked to a whole bunch of other health problems and we wanted to look for ways to reduce the amount of free sugars that weSA国际影视传媒檙e using. And this is one way to do it.SA国际影视传媒�

To those that think this tax is a government cash grab, Bluck says take a look at the numbers.

SA国际影视传媒淒onSA国际影视传媒檛 forget that this will be a very complicated tax to administer, which means that weSA国际影视传媒檒l probably have to help businesses out to do it,SA国际影视传媒� she said.

SA国际影视传媒淲e will not be getting that revenue off of it. It should be just by the sheer low volume of revenue that this is not a tax about raising revenues, and itSA国际影视传媒檚 not a tax grab. ItSA国际影视传媒檚 about seeing if people in the public support the idea of using the tax system to achieve another social outcome, which is in this case, a positive health impact.SA国际影视传媒�

The about the sugar-sweetened drinks tax is open until February 25 at 5:00 p.m.

The findings will be summarized in a public report soon after the public engagement ends.