Provincial Vape Tax 2024: What it Means For You

Starting October 1st, 2024, vaping will become more expensive in Canada due to the introduction of the Provincial Excise Tax on e-cigarettes. The provincial vape tax will take effect in Ontario, Quebec, Nunavut & North West Territories. The total Excise Tax duties on vaping will effectively double in these provinces!  More details below…

What does this mean?

Vape prices will go up due to an additional vape tax from the CRA in the provinces of Ontario, Quebec, Nunavut & Northwest Territories based on the volume of e-liquid in vape products, effective October 01, 2024.

Starting July 01 2024, a product that is only federally taxed at $1.12 per 2 mL is also taxed at the provincial level at $1.12 per 2 mL. This means when the Provincial Vape Tax comes into enforcement on Oct 01, the total vape excise taxes will be follows:

• $2.24 per 2mL for the first 10 mL of vaping substance
• $2.24 per 10mL for e-liquid beyond the first 10 mL

History of Vape Taxes and Duties

Jan 01, 2023

Federal Vape Excise Tax is first introduced at the following rates:

• $1.00 per 2mL for the first 10 ml
• $1.00 per 10mL beyond the first 10 ml

July 01, 2024

Federal Vape Excise Tax is increased by 12% along with the  implementation of the coordinated provincial taxation regime in Ontario, Quebec, the Northwest Territories, and Nunavut.

Vape manufacturers are given a 90-day window from July 1 to Sept 30 to sell vape products produced or imported before the new tax laws become enforceable.

This is what the 12% increased Federal Tax portion looks like:

• $1.12 per 2mL or fraction thereof, for the first 10 ml of vaping substance in the device, or immediate container.
• $1.12 per 10mL or fraction therefore, for e-liquid after the first 10mL.

This is what the new Provincial Tax portion looks like:

• $1.12 per 2mL or fraction thereof, for the first 10 ml of vaping substance in the device, or immediate container.
• $1.12 per 10mL or fraction therefore, for e-liquid after the first 10mL.

The 2024 federal budget estimates the 12% tax hike alone will increase federal revenue by $310 million over the next five years.

Oct 01, 2024

Beginning OCT 01, 2024, RCMP will start enforcing the new Provincial Vape Tax. Vape products without provincial duty stamps will be illegal to purchase in Ontario, Quebec, Nunavut and the North West Territories. This will bring the total excise tax amount by e-liquid volume in these provinces to the following rates:

• $2.24 per 2mL or fraction thereof, for the first 10 ml of vaping substance in the device, or immediate container.
• $2.24 per 10mL or fraction therefore, for e-liquid after the first 10mL.

What It Means For Your Wallet

The average disposable vape (10/15/20K Puffs) will be subject to $13.44 total vape taxes (Federal Excise Taxes $6.72 + Provincial Excise Taxes of $6.72)

The table below shows the excise tax amounts based on the e-liquid held in a vape pack:

Note: All products containing e-liquid or vape juice, including DIY supplies, disposable vapes, and vape pods, are subject to excise vape tax. However, hardware, accessories, replacement coils, and tanks are exempt from this tax.

This would essentially double the excise tax duties in these specific provinces, making vapes cost significantly more compared to vape prices around the country.

Ontario Vape Tax   

The province of Ontario will see a notable rise in vape taxes in 2024, reflecting the new vape duties from the CRA on both the federal and provincial levels. To the disappointment of local vaping communities, it will now be more expensive than before to switch to the health-conscious choice of vaping over cigarettes. Local sentiment indicates that many vapers are preparing for the hike by stocking up in advance.

Quebec Vape Tax

On July 01, 2024, the government of Quebec introduced provincial vape taxes. The new tax will be equal to the current federal vape tax amount, effectively doubling the total duties on vape products in QC. This move comes on the heels of the October 2023 outright FLAVOUR BAN & e-liquid quantity limit of 2mL, making vape flavours illegal in the province of Quebec.

How To Save on The Vape Tax Increase? 

Beginning October 1st, 2024, ELFBAR online store products will reflect the new pricing in ON, QC, NU & NWT. Here are some steps you can take to continue vaping without breaking the bank:

Invest in Pod Devices

We get it, disposables are more convenient than having to manually change pods and refill liquids, but as taxes on vapes go up, pod-systems will become more and more cost-effective when compared to disposable vapes!

Stock Up at Pre-Tax Pricing

Until the new federal and provincial taxes are fully in effect, you can still benefit from current pricing with lower taxes. Buy Now before the new provincial tax rates apply. 

BUNDLE PROMO

Impact On Vapers

We have mixed feelings about this change 🤷‍♂️. The decision to increase vape prices comes right after the Federal Government’s proposed nation-wide flavour ban which received major pushback from local vapers with more than 37,000 Canadians signing petitions for Health Canada to stop the ban.

In a nutshell, vapes still continue to be a cost-effective and healthier harm reduction method for smokers. Discouraging vaping through higher taxes and measures like a flavour ban might result in more harm than good for public health as it has the potential to give rise to a black market and push ex-smokers back to cigarettes.

What’s your take on the new Provincial Vape Tax? Share your thoughts in the comments below, and don’t forget to share this post with fellow vapers