Everything You Need to Know About Canada's New Vape Tax 2024

Vape taxes are imposed so the government can regulate the use of vaping products, especially since vaping is becoming increasingly prevalent nowadays. Some governments may also use the revenue earned from taxation to fund projects, particularly in helping calamity-stricken communities. 

In Canada, excise taxes on vape products imported to and sold in the country are in effect since October 2022. But this year, 2024, new changes and provisions are introduced. What are these changes? How can they impact vape consumers and manufacturers? Let’s find out in this discussion. 

Before heading straight to the actual vape tax Canada 2024 guide, let’s define what excise taxes are. Certain goods made in a particular country or imported to it are taxed for various reasons, but mainly to regulate the consumption of those products, generate revenue for the government, and maintain competition. 

In Canada, numerous items are subject to excise tax, such as, but not limited to wines, spirits, tobaccos, and then, vapes. 

To lay down the details technically, it’s the vape manufacturers and importers who shoulder these exercise taxes. Therefore, they have no choice but to raise the prices of their products, burdening vape consumers. 

Recently, in the announcement of the Canadian government for its 2024 budget, an increase of 12 percent in excise duty rates for vapes was introduced, which is specifically equivalent to: 

• Every standard vape pod in jurisdictions not covered by the new tax regulation gets a 12-cent increase.
• Each typical vaping pod in jurisdictions covered by the new regulation gets an increase of 24 cents.

It was on July 1st, 2024 when the changes have taken effect.

The provinces that are covered by this increase are:

• Northwest Territories
• Nunavut 
• Ontario
• Quebec

As previously discussed, excise taxes are technically going to come mostly from the pockets of vape manufacturers and importers, technically. So, where else can they source these payables than from vape customers themselves? 

More expensive taxes mean more expensive selling or retail prices for vape devices and other related vape products. 

Let’s break down the facts. Applying the new 12 percent increase, the prices can go up to: 

• $1.12 for each 2 grams or milliliters for the first 10 grams or milliliters
• $1.12 for each 10 grams or milliliters for amounts that go over the initial 10 grams or milliliters

That said, there will really be a chance for the demand for vape products in provinces covered to drop. 

But, those who still want to continue on with their vaping as they normally would may take advantage of the new law’s loopholes. As you know, these new vape tax 2024 changes are not Canada-wide, which means there are provinces that may still impose the old tax pricing until the new regulations take effect in those locations. They may instead look at the provinces not yet covered by the new tax rule. 

Also, subsequently, vape brands may make adjustments to still keep sales coming in, such as launching sales, promos, and budget-friendly vape options. 

The provinces of Ontario, Northwest Territories, Quebec, and Nunavut have started topping up the excise taxes on vape products such as disposables, pre-filled vaping pods, and e-liquids since the regulation took effect last July 1st, 2024. 

But, as soon as the world welcomes the New Year 2025, more provinces will be added to the list. Specifically, they are the provinces of Alberta, New Brunswick, Manitoba, Yukon, and Prince Edward Island. 

While others may be willing to spend more on the things they love doing, such as vaping, even if tax increases raise the prices of the equipment needed, some may begin to hesitate, lie low with the routine, or worse, perhaps even totally let it go. 

But all hope isn’t lost. There are ways you can sail your way through the new vape tax 2024 in Canada with flying colors. Here are some practice advice:

Budgeting is paramount: Learn how to monitor your spending more often than before the new taxes were imposed. You can set a monthly budget and keep an eye out for promos and discounts. You can even sign up for membership packages offered by vape brands if that means saving a lot when you purchase.

Calculate, jot down notes, and stay updated: This is a time when you need to make it a habit to calculate unless you want to splurge because of these taxes. Stay updated on the news and take down notes whenever necessary.

Understand the excise stamps: In other words, check the product labels and stickers before you check them out on the counter. All vaping products will have these excise stamps. 

For vaping consumers, they can say it is always better if taxes are low. But let’s face reality. This doesn’t happen all the time. So, will these changes remain for a long period? Or, will the government be more lenient sometime in the future?

As vaping in Canada becomes more and more prevalent, the government, of course, wants to make sure they’re on top of the game. After all, the people are their responsibility. 

Unless otherwise, the government designs an economic stimulus, signs international trade deals, makes drastic changes to its policies, or enacts tax reforms, the new vape tax 2024 in Canada is more likely to continue. 

This excise tax increase on vape products in Canada isn’t the best news that vapers have heard. But, with proper budgeting and knowing the right buying strategies, they’ll be able to navigate through these and adjust in the smoothest way possible. For budget-friendly vape products, consider browsing our catalog here at WAKA CA.