Federal and Provincial Tax Hikes on Vaping Products: What You Need to Know

It looks like your federal and provincial leaders need a new cottage.

In a move that's sure to surprise no one, both the Federal Government of Canada and several Provincial Governments have announced significant excise tax increases on vaping products. This follows the trend of rising taxes that seem to fund "luxurious lifestyles" rather than public needs.

Federal Tax Increase

On May 14th, 2024, the Canada Revenue Agency (CRA) declared a 12% tax increase on all vaping products, effective July 1st, 2024. This hike affects the current federal excise tax rate on all products with the Excise Stamp, which includes all vape juices. No, 12% is not a typo and will have a notable impact on the cost of vaping products.

Provincial Tax Changes

Adding to the federal increase, the Provincial Governments of Ontario, Quebec, Nunavut, and the Northwest Territories have announced their plans to introduce a Provincial Excise Tax. This new tax will mirror the federal excise tax rate, effectively doubling your tax burden.

Breakdown of the New Taxes

To give you a clear picture, here’s a comparison of the current and upcoming tax rates:

Current Tax Rates:

  • Purchase a 20mL disposable vape: Pay $6 in Excise Tax.
  • Purchase two 20mL disposable vapes: Pay $12 in Excise Tax.

As of July 1, 2024:

  • Purchase a 20mL disposable vape: Pay $13.44 in Excise Tax.
  • Purchase two 20mL disposable vapes: Pay $26.88 in Excise Tax.

This significant increase means that taxes on vaping products will more than double starting this July. The combined effect of the federal and provincial taxes will hit hard, all thanks to, you guessed it, taxes.

For more details on how these taxes will impact you, let's break down the tax structure further.

Volume Federal Tax (Current) Federal Tax Increase (12%) Provincial Tax Increase (12%) Total Federal & Provincial Tax (Per Unit)
0.1 - 2mL $1 $1.2 $1.2  $2.24
2.1 - 4mL $2 $2.24 $2.24 $4.48
4.1 - 6mL $3 $.3.36 $3.36 $6.72
6.1 - 8mL $4 $4.48 $4.48 $8.96
8.1 - 10mL $5 $5.60 $5.60 $11.20
10.1 - 20mL $6 $6.72 $6.72 $13.44
20.1 - 30mL $7 $7.84 $7.84 $15.68
50.1 - 60mL $10 $11.20 $11.20 $22.40


Upcoming Changes in Vaping Product Regulations: What You Need to Know

The tax increases on vaping products, effective July 1, 2024, are just the beginning. There are additional regulatory changes that will significantly impact how vaping products are sold and distributed - including criminal charges from the RCMP. Yes, the publicly funded federal police are being used.

New Provincial Excise Tax Stamps

Starting September 30, 2024, all vaping products must feature province-specific Excise Tax stamps. These stamps, which are different from the current federal stamps, will indicate the province for which the product is designated. This means we will only be able to sell products stamped for Quebec to customers in Quebec, and vice versa. If you order a provincial stamped product and the shipping address does not match that province, your order will be cancelled - even if it's in-stock.

Why? Just continue reading.

Enforcement by the RCMP

This new regulation will be strictly enforced by the RCMP, Canada's federal police force. As of October 1, 2024, the RCMP Excise Officers will be responsible for monitoring compliance, handling complaints, and enforcing these new regulations. Non-compliance, such as selling a product stamped for Ontario in Quebec or vice versa, will be treated as a criminal offences. 

Yes, you read that correctly. The RCMP is handling, monitoring and dishing out criminal offences as they deem fit. All over vape juice.

Key Dates and Changes

  • July 1, 2024: Federal and Provincial Excise Tax increases take effect, raising the price of vaping products.
  • September 1, 2024: All products must feature the new Excise Stamps. Unstamped products can no longer be sold.
  • September 30, 2024: We must sell products with province-specific stamps. Products must only be sold within the designated province.
  • October 1, 2024: RCMP begins enforcement, with severe penalties and criminal charges for non-compliance.

Please. Just stop and take all of this in for a second.

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