A new tax on sugary drinks sold in Newfoundland and Labrador has come into effect.

The province's sugar-sweetened beverage tax - which adds 20 cents per litre to the cost of soft drinks, as well as fruit-flavoured sweetened juices, iced tea, lemonade, energy and sports drinks, sodas, and refreshment beverages - is in effect as of Thursday.

The levy also applies to concentrates, costing 20 cents per litre when manufactured after dilution, and will be subject to the provincial sales tax.

The province announced the new tax as part of its budget last year and released further details in October 2021.

Officials said the goal is to improve the health of the population and make the province one of the healthiest provinces in Canada by 2031.

Since then, the provincial government has launched an awareness campaign called Rethink Your Drink in an effort to encourage residents to make "healthy beverage choices."

Deputy Premier and Finance Minister Siobhan Coady said in a statement on August 11: "Encouraging Newfoundlanders and Labradorians to make healthy drink choices is the main message in the 'Rethink Your Drink' awareness campaign."

The tax is expected to bring in about $9 million annually, which will be used to help fund the prenatal infant nutrition supplement in the province - a benefit for pregnant mothers and families with children under one year old - school breakfast and lunch programs, and Newfoundland's physical activity tax credit programs.

Some beverages are exempt from the tax, such as alcoholic drinks, chocolate milk, diet drinks with artificial sweeteners, baby formula, yogurt drinks, and meal replacement beverages.