Vaping Product Excise Tax

Once again, Vaping is about to get more expensive...

With the Canadian Governments' introduction of Excise Stamps to Vaping, the cost of all Vaping Products containing e-liquid will be going up. This includes Disposables, Pre-filled Pods and all Bottles of E-liquid — regardless of the amount, type or presence of Nicotine.

The Cost

The cost of the Excise Tax will vary from product to product, and will be determined by the following:

• $1 per 2 milliliters (mL), or fraction thereof, for the first 10 mL of vaping substance in the vaping device or immediate container
• Then, $1 per 10 mL, or fraction thereof, for amounts over the first 10 mL

Examples:

• (1) A package containing  pods, with each pod containing 2 mL of vaping liquid, attracts $3 of vaping duty ($1 per 2 mL pod). It is important to note that the vaping duty is calculated on the quantity of vaping liquid contained in each individual pod, not on the total volume contained in the package.
• (2) A 30 mL bottle of vaping liquid attracts $7 of vaping duty ($5 for the first 10 mL plus $2 for the next 20 mL).

The Effect

Unfortunately for consumers, Excise Taxes are absorbed into the product cost and aren't simply added as an additional Tax.

While 2mL Disposables and packs of 3x 2mL Pods will only be going up $1 and $3 dollars respectively, the Excise Tax will also be Sales Taxed. That Sales Tax is already at 26% in British Columbia (5% GST and 20% PST on the subtotal including GST).

The Deadline

January 1st 2023, all products containing liquid must be stamped and have the excise duty applied to them in Canada.
Starting October 1st, 2022, any Vaping Products containing e-liquid that are being manufactured or imported for sale in Canada, must be Excise Duty Stamped.
Any Vaping Products containing e-liquid that were manufactured or imported before October 1st, must be sold or Excise Duty Stamped by January 1st, 2023.

The Conclusion

Nothing ever gets cheaper in life, especially when the Government gets involved. The introduction of Excise Stamps on Vaping products in Canada will result in an increase in the cost of all Vaping Products containing e-liquid, including Disposables, Pre-filled Pods, and all Bottles of E-liquid.

The cost of the Excise Tax will vary from product to product, with the first 10 mL of vaping substance in the vaping device or immediate container attracting $1 per 2 milliliters, and amounts over the first 10 mL attracting $1 per 10 mL.

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