A New Vaping Tax In Canada Could Mean Your Vapes Are About To Get More Expensive
Here's what's changing.👇
Vaping in Canada will be undergoing a small change over the coming weeks and those who vape regularly might just notice a subtle difference in vape packaging, starting January 1.
That's because Canada Revenue Agency has announced that, as of the new year, all vaping products sold in stores across the country will require a vaping excise stamp.
The peach-coloured excise stamp is basically an extension of an excise duty that was already slapped onto vaping products on October 1, 2022.
This excise duty applies whether the liquid contains nicotine or not.
The CRA said the products will transition from unstamped to stamped, ahead of January 1, which means you may have already spotted this change in packaging over the last few weeks.
\u201cStarting January 1st, #vaping products sold in Canadian retail stores will require a vaping excise stamp. Ahead of this date, products will transition from unstamped to stamped. \n\nFor more info: https://t.co/w1dUJSJYFY #CdnTax\u201d— Canada Revenue Agency (@Canada Revenue Agency) 1669844113
Does Canada tax vaping products?
As of October 2022, the feds have implemented an excise duty on vaping products in Canada.
This excise duty applies to all "vaping substances" that are manufactured in the country or imported, for use in a vaping device.
The rate is basically $1 for every 2 ml of the first 10ml of the vaping liquid. It then reduces to $1 for every 10ml, for amounts over the first 10ml.
So, that means a package with 4 pods of 1.5ml will be charged $4 of vaping duty (it's calculated based on the quantity of vaping liquid in each pod, not total volume).
Or, a 30ml bottle of vaping liquid will be charged an excise duty of $7 ($5 for the first 10ml and then $2 for the remaining 20ml).
The cost of the new excise stamp has to be covered by businesses and not customers. However, you might just see companies hiking up prices to cover the additional tax.
So, this might be a bit of bad news for vape smokers. In fact, if you're a vaper, you may have already noticed an increase in the cost of your usual products.
This article's cover image was used for illustrative purposes only.