Get ready, vapers. Significant excise tax increases are coming to all e-liquids in the coming weeks. This means you'll be paying more at the checkout for your e-liquid or disposable vapes. Let's break down what's happening and when:
The Harmonized Tax (HET): Doubling the Federal Rate
Several provinces and territories are adopting a new Harmonized Excise Tax (HET) on e-liquids, effectively doubling the current federal excise tax rate. This means a substantial price jump for consumers.
Effective July 1, 2024: Quebec, Ontario, Nunavut, and Northwest Territories implemented their HET and is currently in effect. Prices are expected to remain the same for customers in these provinces.
| E-liquid Volume | Current Tax (Effective July 1, 2024) |
|---|---|
| 30ml | $15.68 |
| 60ml | $22.40 |
| 120ml |
$35.84 |
| 20ml disposable vape | $13.44 |
| 3 pack of 2ml pods | $13.44 |
Effective January 1, 2025: Alberta, Manitoba, New Brunswick, Prince Edward Island, and Yukon will join the harmonized excise tax system. There's a grace period that allows merchants to sell off the remaining e-liquid products that currently have a federal excise stamp. Customers in these provinces should expect price hikes in the coming weeks, as vape shops transition to products that include the province specific stamp.
| E-liquid Volume | Current Tax (Effective July 1, 2024) | New Tax (Starting January 1, 2025) |
|---|---|---|
| 30ml | $7.84 | $15.68 |
| 60ml | $11.20 | $22.40 |
| 120ml |
$17.92 | $35.84 |
| 20ml disposable vape | $6.72 | $13.44 |
| 3 pack of 2ml pods | $3.36 | $6.72 |
A Federal Increase Affecting Everyone
On July 1st of 2024, the government implemented a federal excise tax that applies to all provinces. The HET is an additional tax that is applied on top of the federal excise tax.
What This Means for Your Wallet
This combination of the HET and the federal tax increase translates to a significant price hike for vapers. Many Canadians are already dealing with the new tax reality, and the rest of should expect to see the same price jumps in the coming weeks.
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