Federal and Provincial Tax Increase on Vaping Products
Federal and Provincial Tax Increase on Vaping Products: What You Need to Know
Effective July 1st 2024, the vape industry will unfortunately be seeing a significant increase in prices on all vaping products across Canada. This initiative aims to discourage vaping usage by significantly increasing the cost of ALL E-Liquid containing vape products.
Federal Tax Increase
The federal government is increasing the excise tax on all vaping products by 12% for all provinces.
Provincial Tax Increase
Additionally, a provincial excise tax will be implemented on vaping products in the following provinces: Ontario, Quebec, Northwest Territories and Nunavut. With both the federal government and provincial harmonized vape excise tax, this will effectively double the tax in these provinces.
This unfortunately will cause a significant price increase for both consumers and retailers. Trust us, we are just as frustrated as you are with the price increases.
Tax Breakdown
Here is a comparison of the current and upcoming tax rates:
- Current Federal Excise Tax: $1
- Updated Federal Excise Tax (12% Increase): $1.12
- New Provincial Excise Tax: $1.12
- Total Updated Federal + Provincial Excise Tax (July 1st, 2024): $2.24
- Current Federal Excise Tax: $2
- Updated Federal Excise Tax (12% Increase): $2.24
- New Provincial Excise Tax: $2.24
- Total Updated Federal + Provincial Excise Tax (July 1st, 2024): $4.48
- Current Federal Excise Tax: $3
- Updated Federal Excise Tax (12% Increase): $3.36
- New Provincial Excise Tax: $3.36
- Total Updated Federal + Provincial Excise Tax (July 1st, 2024): $6.72
- Current Federal Excise Tax: $4
- Updated Federal Excise Tax (12% Increase): $4.48
- New Provincial Excise Tax: $4.48
- Total Updated Federal + Provincial Excise Tax (July 1st, 2024): $8.96
- Current Federal Excise Tax: $5
- Updated Federal Excise Tax (12% Increase): $5.60
- New Provincial Excise Tax: $5.60
- Total Updated Federal + Provincial Excise Tax (July 1st, 2024): $11.20
- Current Federal Excise Tax: $6
- Updated Federal Excise Tax (12% Increase): $6.72
- New Provincial Excise Tax: $6.72
- Total Updated Federal + Provincial Excise Tax (July 1st, 2024): $13.44
- Current Federal Excise Tax: $7
- Updated Federal Excise Tax (12% Increase): $7.84
- New Provincial Excise Tax: $7.84
- Total Updated Federal + Provincial Excise Tax (July 1st, 2024): $15.68
- Current Federal Excise Tax: $8
- Updated Federal Excise Tax (12% Increase): $8.96
- New Provincial Excise Tax: $8.96
- Total Updated Federal + Provincial Excise Tax (July 1st, 2024): $17.92
- Current Federal Excise Tax: $9
- Updated Federal Excise Tax (12% Increase): $10.08
- New Provincial Excise Tax: $10.08
- Total Updated Federal + Provincial Excise Tax (July 1st, 2024): $20.16
- Current Federal Excise Tax: $10
- Updated Federal Excise Tax (12% Increase): $11.20
- New Provincial Excise Tax: $11.20
- Total Updated Federal + Provincial Excise Tax (July 1st, 2024): $22.40
New Regulatory Changes for Vaping Products
There are also additional regulatory changes that will significantly impact the sale and distribution of vaping products, including criminal enforcement by the RCMP.
Introduction of Provincial Excise Tax Stamps
Starting September 30, 2024, all vaping products must feature province-specific excise tax stamps. These stamps, which differ from the current federal stamps, will indicate the province for which the product is designated.
RCMP Enforcement
This new regulation will be strictly enforced by the RCMP, Canada’s federal police force. Beginning October 1, 2024, RCMP Excise Officers will be responsible for monitoring compliance, handling complaints, and enforcing these new rules. Non-compliance will be treated as a criminal offense.
Conclusion and Tips for our Valued Customers
We understand how frustrating this increase will be, and we want our customers to remain informed on these changes. Vapers all across the country will be impacted, with those living in Ontario, Quebec, Northwest Territories and Nunavut seeing the biggest increases.
Vape Barn is always committed to providing the most competitive prices. We know that for most of us, vaping is a necessity we rely on to keep us from smoking cigarettes. We regularly offer generous promotions and discounts through our newsletter. We encourage you all to sign up, so that you don’t miss these frequent promotions. We also offer Weekly Deals, where we have special discounts on popular products. Vape Barn also has a great Rewards Program, where you can redeem your points for money. Additionally, we offer bundle discounts on disposables, vape pods, and e-liquid.
We understand that these adjustments may have a substantial impact on your purchasing decisions and we sympathize with you. These regulations have as much of an impact on us as it does on you, and we are deeply displeased with how our government chooses to handle vaping. It seems that the industry is always under attack, which is unfortunate as so many of us rely on this industry.
Key Dates & Changes:
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July 1, 2024: Updated Federal and New Provincial Excise Tax increases take effect, raising the price of vaping products.
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September 1, 2024: All products must feature the new Excise Stamps. Products without updated Excise Tax Stamps can no longer be legally sold.
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September 30, 2024: All businesses must sell E-Liquid containing products with Province-specific stamps. Products must only be sold within the designated province.
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October 1, 2024: RCMP begins enforcement, with severe penalties and criminal charges for non-compliance.