The new excise taxes on vaping products: what you need to know
Effective July 1, 2024, Canada has increased the excise tax rate on vaping products, and certain provinces, such as Quebec and Ontario, have implemented their own excise tax, marking a significant change for consumers and market participants. At Prime Vape, we want to keep you informed about the details of these new regulations so that you can better understand their impact on your purchases.
What is the excise tax on vaping products?
The excise tax is a specific tax applied to vaping products, introduced in 2022. This tax is collected by the federal government and, since July 1, 2024, by the provinces as well. It is calculated based on the volume of vaping liquid, which means that the amount of tax will depend on the quantity of product you purchase.
Federal tax details
Starting July 1, the federal excise tax will be increased by 12% on all products containing vaping liquid, with or without nicotine, including bottles of e-liquids, disposable devices, and pre-filled pods. The amount of this tax is set per milliliter of vaping liquid.
Here is an overview of the federal tax rates:
- $1.12 per 2 ml, or a fraction of this amount, for the first 10 ml of vaping substance contained in the vaping device or immediate container.
- $1.12 per 10 ml, or a fraction of this amount, for any quantity exceeding the first 10 ml.
Additional provincial taxes
In addition to the federal tax, certain provinces, including Quebec and Ontario, will also apply a new tax on vaping products. This new provincial excise tax will reflect the rate of the federal excise tax, thereby doubling the amount to be paid per product. The recent 12% increase also affects the provincial tax.
Here is a table explaining the total applicable taxes for all product quantities we have in store:
|
Volume |
Federal tax (current) |
New federal tax increase (12 %) |
New provincial tax incl. the 12 % increase |
Total of Prov. and Fed. tax |
|
0,1 - 2 ml |
1 $ |
1,12 $ |
1,12 $ |
2,24 $ |
|
2,1 - 4 ml |
2 $ |
2,24 $ |
2,24 $ |
4,48 $ |
|
4,1 - 6 ml |
3 $ |
3,36 $ |
3,36 $ |
6,72 $ |
|
6,1 - 8 ml |
4 $ |
4,48 $ |
4,48 $ |
8,96 $ |
|
8,1 - 10 ml |
5 $ |
5,60 $ |
5,60 $ |
11,20 $ |
|
10,1 - 20 ml |
6 $ |
6,72 $ |
6,72 $ |
13,44 $ |
|
20,1 - 30 ml |
7 $ |
7,84 $ |
7,84 $ |
15,68 $ |
|
50,1 - 60 ml |
10 $ |
11,20 $ |
11,20 $ |
22,40 $ |
|
90.1 - 100ml |
14 $ |
15,68 $ |
15,68 $ |
31,36 $ |
Impact on prices
Due to these new taxes, the prices of vaping products will need to be adjusted. At Prime Vape, we are committed to offering you the best products at the best possible prices. We are doing everything we can to minimize the impact of these taxes on our customers while ensuring transparency in our pricing.
When will the new tax be applied?
The increase in provincial and federal taxes takes effect for all products manufactured after July 1, 2024. Retailers have a transition period until September 30 to sell products that do not have the new excise stamps. After this date, vaping products must be sold with a specific stamp for each province. Products can only be sold within their designated province.
What we are doing for you
We understand that these changes may raise questions and concerns. At Prime Vape, we are committed to providing you with clear and up-to-date information on these taxes. We are doing what is necessary to keep prices as low as possible for as long as possible. We will gradually update our prices accordingly and keep you informed of any significant changes. Our goal is to offer you transparent service and help you navigate these changes smoothly.
Questions or concerns?
If you have any questions about these new taxes or their impact on your purchases, do not hesitate to contact us. Our team is here to help and answer all your questions.
Thank you for your continued support and your trust in Prime Vape. We remain committed to offering you the best possible service despite these new regulations.