• November 17, 2024

Canada Proposes Federal Vape Tax

 Canada Proposes Federal Vape Tax

Photo: Roman R

Photo: Roman R

The Canadian government has proposed the country’s first federal vape tax, which would take effect Oct. 1 if passed, according to Vaping360.

The tax applies only to nicotine-containing products, including pod-style and cartridge-style refills, disposable vapes and bottled e-liquids as well as nicotine base for DIY liquids. It does not apply to hardware that is sold without e-liquids. The tax also includes an option for Canadian provinces to add on their own, equally large, taxes.

Vaping products would see a tax of CAD1 ($0.97) per 2 mL for the first 10 mL of e-liquid in any sealed container and $1 per 10 mL for additional liquid in the same container. Sealed pods would be taxed separately at a minimum of $1 per pod.

Retailers would have until Jan. 1, 2023, to sell any untaxed stock they still have on Oct. 1 when the law would go into effect.

The tax is awaiting a vote by Parliament’s House of Commons, which is expected to take place either at the end of April or beginning of May.