Proposed CNMI sugar tax is vetoed

2:00 pm on 13 June 2016

A controversial bill to raise taxes on soft drinks, sugar powders, and syrups in the Northern Marianas has been vetoed by the Governor Ralph Torres.

The "Health Impact Sugar Tax" would have raised taxes on sugar sweetened beverages, syrups, and powders by 4 cents per ounce.

Mr Torres said the bill did not include any provisions that actually created a "special healthcare impact account"- where the funds from the tax would be deposited for health programmes.

He also said the tax could be punitive for businesses and consumers.