Rules by country / Americas / British Columbia soda tax
British Columbia soda tax: what 7% PST costs each drink
Sweetened fizzy drinks in British Columbia lost their exemption as food and pay 7% provincial sales tax, whether they use sugar or sweeteners. Drinks from fountains and vending machines pay it too. We work out the cost for every product and how to price for it.
Provincial sales tax at 7%. Federal GST is charged as well.
A soda tax review for British Columbia
What the PST costs each product, and the most profitable response, with a price plan for each retailer.
- The tax on every product and pack
- Pass on, absorb or change the range: the most profitable choice for each product, and how sure we are
- Which packs and price points to lead with
- A price plan for each retailer, and an Excel model
How your results look
| Product | PST on the shelf price | Our advice |
|---|---|---|
| Cola, 12 x 355ml at C$8.99 | C$0.63 | Pass on in full |
| Sweetened sparkling water, 1 litre at C$2.49 | C$0.17 | Hold the price point |
| Iced tea, still, 1 litre | None | Lead with it |
Fictional products. Every real result comes with the expected sales and profit, and a likely range.
Your options
Every option has a fixed price, agreed before we start.
Sugar tax review
- The tax and best choice for each product
- Price plan for each retailer
- Scenario model and a walk-through
Pricing review with the tax
- Everything in the tax review
- Prices and promotions for the whole range
- How your products take sales from each other
Portfolio review
- Everything in the pricing review
- More retailers and data sources
- A plan for each channel
After the project: a refresh before each pricing round, from £2,000 (about C$3,700). Prices are fixed in pounds sterling; amounts in Canadian dollars are a guide at October 2026 exchange rates. We're based in the UK and work remotely, in English, under NDA.
How it works
From the first call to your plan in about three weeks.
A free 15-minute call
Tell us about your range. We say whether a review would pay for itself, and quote a fixed price.
Your data
Sales by product and retailer, recipes and costs. We sign an NDA before anything moves.
Your plan
The tax on every product, the best choice and a price plan, walked through with your team.
British Columbia soda tax: the detail
Open only what you need.
- Rate
- 7% provincial sales tax (PST) on the price
- Taxed
- Carbonated or effervescent drinks with sugar, natural sweeteners or artificial sweeteners: soft drinks, sparkling juices with added sweeteners, carbonated energy drinks, sweetened sparkling water and kombucha
- Fountains and vending
- All drinks from soda fountains, soda guns and vending machines, except machines only for coffee or water
- Still exempt
- Still drinks and plain sparkling water, as food
- Since
- April 2021, first planned for July 2020 in Budget 2020
Pass it on
Raise the price by the tax or more. Works for products whose sales hold up when the price rises.
Absorb it
Keep the price and take the cost. Works when a rise would push a product past a key price point and lose more profit than the tax.
Shift the range
Still drinks stay exempt, so a still line can carry the price point.
Is there a soda tax in BC?
Yes. Sweetened fizzy drinks pay 7% provincial sales tax (PST), because they are no longer exempt as food.
Are diet sodas taxed in BC?
Yes. The PST applies to fizzy drinks with sugar, natural sweeteners or artificial sweeteners.
Is sparkling water taxed in BC?
Plain sparkling water isn't. Sweetened or flavoured with sweeteners, it is.
When did the BC soda tax start?
In April 2021. It was first planned for July 2020.
How much does a soda tax review cost?
A review of up to 10 products has a fixed price from £7,500 (about C$14,000) and takes about three weeks. For 11 to 50 products, a full pricing review costs around £17,500 (about C$33,000). It starts with a free 15-minute call.
Do you work with brands in Canada?
Yes. We're based in the UK and work remotely and in English, under NDA. Prices are fixed in pounds sterling before we start, and the first step is a free 15-minute call.
- Global News, Budget 2020: B.C. government
- CCentral, British Columbia implements tax on carbonated beverages
Checked on 25 October 2026. Rules and rates change, so check the official source before making decisions. This page is not tax advice.