Navigating Changes: Understanding the New Provincial Excise Tax on Vaping Products

Posted by Brennan Laughlin on

Navigating Changes: Understanding the New Provincial Excise Tax on Vaping Products

As of October 1st, 2022, the Canadian federal government implemented a significant change in the vaping landscape by introducing an excise tax. Similar to excise stickers found on tobacco and cannabis products, this tax requires every e-liquid bottle or pre-filled pod sold within Canada to be excise-duty stamped. The impact of this decision extends beyond the federal level, as provinces now have the option to opt in and collect their own excise duty.

Provincial Excise Duty Implementation

Starting July 1st, 2024, several provinces, including Ontario, Quebec, Northwest Territories, and Nunavut, will be actively collecting excise duty on all vapeable vaping products, including E-Liquid, Disposables, and Pre-Filled Pods. This move aligns with the federal regulation, effectively doubling the excise duty in the provinces that have chosen to participate.

Excise Duty Rates

The provincial excise duty rates mirror the federal rates and are structured as follows:

- $1 per 2mL on the first 10mL of e-liquid (or pod, or disposable)
- $1 per 10mL above the first 10mL

Impact on Consumers

This change translates to a noticeable increase in excise taxes, with a direct impact on consumers' wallets. To put it into perspective, a 30mL bottle incurs an additional $14.00 (Federally and Provincially combined), a 60mL bottle sees a $20.00 increase, a 120mL bottle faces a $32.00 rise, and a 500mL bottle experiences a substantial $108.00 hike.

Legal Implications of Duty Stamps

The Canada Border Services Agency and the Canadian Revenue Agency have made it clear that any products shipped into Canada from outside Canada must be duty-stamped or considered not legal for sale or import. As seen with the federal stamp regime, Customs have been confiscating and denying entry to packages that are not duty-paid/stamped.

Affordability of Vaping

Even with this new tax, vaping remains a significantly more affordable option compared to traditional smoking. A pack-a-day smoker will spend approximately $126 on cigarettes in a 1-week period versus only about $40 on e-liquid. This significant cost difference reinforces the economic benefits of choosing vaping over smoking.

Broad Impact on Vaping Products

This excise tax affects a wide range of vaping products, including disposable vapes, pre-filled pod systems such as Juul, STLTH, and DIY products like VG, PG, Flavoring, and Nicotine Base at 20mg/mL when sold for vaping purposes.

Silver Bridge Vapes: Navigating the Changes Together

At Silver Bridge Vapes, we understand the evolving landscape of vaping regulations. We are committed to keeping our customers informed and providing the best possible solutions to navigate these changes. While these excise taxes pose new challenges, our dedication to offering a diverse range of products and maintaining competitive prices remains unwavering.

As the vaping industry adapts to these regulatory shifts, it's crucial for consumers to stay informed. The introduction of provincial excise duty adds a new layer to the cost structure, and at Silver Bridge Vapes, we're here to guide you through these changes. Our commitment to providing quality products and exceptional service remains at the forefront as we navigate this evolving landscape together. Stay informed, stay empowered, and continue enjoying your vaping experience with Silver Bridge Vapes.

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