TLDR; Starting July 1st 2024, Canadian Vapers can expect price increases that vary depending on what province they reside in.
The federal government is increasing the excise tax by 12% for all provinces. In addition, the following provinces & territories will also collect an additional tax on all vapeable products — effectively doubling the tax
- Ontario
- Quebec
- Northwest Territories
- Nunavut
Additional Changes to for Vapers to Know
Alongside the tax increase & additional reporting requirements for retailers, the provinces and territories mentioned above are also getting hit with a province-specific stamp.
How does this affect me?
Starting on July 1, 2024: Ontario, Quebec, Northwest Territories, and Nunavut will be considered specified vaping provinces with their own province specific excise duty stamps. Products sold in any of these areas will require their respective stamp to be sold.
Retailers will essentially be required to hold province specific stock if they intend to ship parcels to any of the above mentioned areas. As the vast majority of vape retailers are small local businesses, most will be unable to continue shipping and be forced to stop serving these provinces.
Specified Vaping Provinces | Non-specified Vaping Province |
---|---|
Ontario | Alberta |
Quebec | British Columbia |
Northwest Territories | Manitoba |
Nunavut | Saskatchewan |
New Brunswick | |
Newfoundland and Labrador | |
Nova Scotia | |
Prince Edward island |
If you live in a specified vaping province: you will only be able to purchase vapeable products that are stamped for your province. The product you purchase will have a 12% increase on the excise tax paid + a provincial tax equal to the federal rate, effectively doubling the tax.
If you live in a non-specified vaping province: You will be able to purchase vapeable products that do not have a province specific stamp. The product you purchase will have a 12% increase on the excise tax paid.
example
- A customer lives in Ontario and normally purchases their vaping supplies from an online store that ships out of Alberta
- The Alberta store might have the exact product available, but not have the province specific stamp that's required to ship the item to Ontario
This means that the customer in a specified vaping province now has no choice but to order their vaping products from within their own province — which decreases overall competition, severely limits consumer choices, and significantly increases the price for the end user.
It's important to know that provinces like Saskatchewan and BC have their own additional tax on vaping products that's not included in the excise tax. These provincial taxes are applied on top of the increased federal excise tax.
A Breakdown of the Additional Vaping Duty — for Non-specified Vaping Provinces
- $1.12 per 2 millilitres (mL) or fraction thereof for the first 10 mL of vaping substance in the vaping device or immediate container
- $1.12 per 10 mL, or fraction thereof, for amounts over the first 10 mL
Product | Current Tax | New Tax (July 1, 2024) |
---|---|---|
STLTH pod pack (3 pk) | $3.00 | $3.36 |
30mL bottle of e-liquid | $7.00 | $7.84 |
60ml bottle of e-liquid | $10.00 | $11.20 |
100ml bottle of e-liquid | $14.00 | $15.68 |
120ml bottle of e-liquid | $16.00 | $17.92 |
A Breakdown of the Additional Vaping Duty — for Specified Vaping Provinces
- $2.24 per 2 millilitres (mL) or fraction thereof for the first 10 mL of vaping substance in the vaping device or immediate container
- ($1.12 in federal duty + $1.12 in provincial duty)
- $2.24 per 10 mL, or fraction thereof, for amounts over the first 10 mL
- ($1.12 in federal duty + $1.12 in provincial duty)
Product | Current Tax | New Tax (July 1, 2024) |
---|---|---|
STLTH pod pack (3 pk) | $3.00 | $6.72 |
30mL bottle of e-liquid | $7.00 | $15.68 |
60ml bottle of e-liquid | $10.00 | $22.40 |
100ml bottle of e-liquid | $14.00 | $31.36 |
120ml bottle of e-liquid | $16.00 | $35.84 |
What Can I do?
Unfortunately we're not at a point where we can avoid this excise tax system. In this position vapers can do little but prepare for the upcoming price hikes. While the price increase will affect all of us, vapers living in a specified vaping province see the largest increases.
Cost Saving Tips
- Stock up before July 1
- Watch for deals on e-liquid, nic salts, pods, and disposables
- Explore alternative devices
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