Overview of the 2024 12% Excise Tax Increase for Vapes in Canada

What is an Excise Tax?

An excise tax is a special tax on specific goods like tobacco, alcohol, and vaping products. It's usually included in the price you pay at the store. 

Details of the 12% Excise Tax Increase

Starting July 1, 2024, the Canadian government will increase the excise tax on vaping products by 12%. This tax applies to all e-liquid vaping products. Provinces like Ontario, Quebec, Nunavut, and the Northwest Territories will also add their own matching tax, doubling the increase in these areas​

Impact on Vaping Product Prices

The new tax will raise the cost of vaping products. For example:

• Products with 0.1mL to 2mL of e-liquid: Tax will increase from $1 to $1.12 federally, and to $2.24 with the provincial tax.
• Products with 2.1mL to 4mL: Tax will increase from $2 to $2.24 federally, and to $4.48 with the provincial tax.
• For a 30mL bottle of e-liquid: Tax will increase from $7 to $7.84 federally, and to $14.44 with the provincial tax.
• Similar increases will apply to larger volumes of e-liquid​​​

Conclusion

The 12% excise tax increase on vaping products in Canada is designed to reduce vaping and address public health concerns, particularly among the youth. By making these products more expensive, the government aims to discourage their use while raising additional revenue.