Canada proposes federal tax on e-cigarette products

Apr.08.2022
Canada proposes first federal tax on e-cigarette products, effective October 1st. Tax rates are significant.

According to reports from international media, the Canadian government has proposed its first federal tax on electronic cigarette products in its 2022 budget. As part of the proposed federal budget announced on Thursday, the tax on electronic cigarettes will come into effect on October 1st – if formally passed through parliament.

 

The proposed tax is extensive and includes the option for Canadian provinces to bear the same amount of federal taxes as assessed by the federal government. The central government is encouraging provinces and territories to adopt the same tax scheme which will be managed by federal tax authorities.

 

The proposed tax on Thursday only applies to products containing nicotine, including pod-style and cartridge-style refills, disposable e-cigarettes, and bottled e-liquids. The tax appears to include nicotine base sold for DIY purposes. It does not apply to hardware that does not contain e-juice.

 

Exclude vapers and vape shops from pricing the market they created.

 

The tax for the first 10 milliliters of any sealed container (bottle, jar, etc.) is $1 for every 2 milliliters. Additional liquid in the container is taxed $1 for every 10 milliliters. As a result, a 30-milliliter bottle of e-liquid would see a price increase of $7, a 60-milliliter bottle would increase by $10, and a 100-milliliter bottle would increase by $14. The tax for a pack of four 1-milliliter pods would be $4, as each individual pod is taxed separately. The minimum tax for any single container is $1.

 

The effective tax rate on bottled e-cigarette liquid may be higher than 100% of the retail price. The situation may be even worse for home brewing equipment, where the tax on a one liter bottle of DIY nicotine is $104.

 

For Canadians residing in provinces and territories taking part in the proposed "coordinated electronic cigarette tax system," the tax burden will double. The proposal is attractive to provinces as the federal government will handle all accounting and simply send each participating province a cheque for the tax revenue collected. Several provinces in Canada already have existing taxes in place.

 

Retailers will be allowed to sell tax-free products from their inventory between October 1st and January 1st, 2023.

 

Proposed tax regulations will allow Canadian residents who have been traveling abroad for more than 48 hours to bring back up to 10 electronic cigarette products containing no more than 120 milliliters of e-liquid without paying duties.

 

(Source: vaping360)

 

Canada has proposed a new federal tax on vaping products, which has been described as "brutal" by some. The tax would result in a 50% increase in the retail price of vaping products and is part of the Canadian government's effort to reduce vaping among young people and protect public health. The proposed tax has caused concern among vaping advocates and businesses, who argue that it will harm adult smokers who are trying to quit and lead to job losses in the vaping industry. The tax is set to take effect on January 1, 2022, pending approval by the Canadian parliament.

 


Disclaimer

This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.

Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.

The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.

This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.

 

Copyright Notice

This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.

No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.

For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.

 

AI-Assisted Translation and Editing Notice

Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.

Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.

PMI Expands Its Second Global and First Asian Business Services Hub in the Philippines, Serving 160 Markets and Scaling Up AI Capabilities
PMI Expands Its Second Global and First Asian Business Services Hub in the Philippines, Serving 160 Markets and Scaling Up AI Capabilities
Philip Morris International's PMI Business Solutions Philippines has expanded its global business services hub in Makati and plans to add more than 80 positions. Established in 2021 primarily to provide finance and IT support to about 20 markets, the center now employs 519 professionals delivering roughly 600 services across 160 markets. Its functions now span finance, human resources, IT, commercial operations, data analytics, supply chain and project management. PMI says the hub's next phase will focus on AI-enabled and higher-value work. The company did not disclose the size or investment cost of the expansion.
Sep.24
SMOORE’s DOJO by VAPORESSO to Launch New Global Brand Identity on September 1
SMOORE’s DOJO by VAPORESSO to Launch New Global Brand Identity on September 1
According to recent LinkedIn posts from people at VAPORESSO, SMOORE and a German distribution partner, vape brand DOJO will begin rolling out a new global brand identity on September 1, 2026, led by a redesigned handwritten logo. The new visual system will be gradually applied across product packaging, marketing materials and digital assets over the following months. Fabio Corsaro, Head of Marketing and Purchasing at MG Wesel GmbH, said the rebrand was related to trademark issues, but that explanation has not been publicly confirmed by DOJO, VAPORESSO or SMOORE. DOJO is currently promoting its Blast X product in Germany.
Aug.31
Special Report | From New York to Washington: How FDA’s Tobacco Center Is Reworking Product Review
Special Report | From New York to Washington: How FDA’s Tobacco Center Is Reworking Product Review
FDA’s Center for Tobacco Products is reshaping how it approaches tobacco product review. Based on 2Firsts’ on-site reporting in New York and Washington, this report traces CTP’s emerging direction: stronger links between PMTA and tobacco harm reduction, more category-specific review, greater emphasis on decision-relevant science, more predictable timelines and expanded use of sPMTA for product modifications. CTP also acknowledged major constraints, including just nine PMTA review teams, persistent backlogs and limits on hiring capacity.
Regulations
Oct.08
Product | BAT Expands VELO Travellers’ Collection With Mexico, Spain and Sweden Summer Edition Nicotine Pouches
Product | BAT Expands VELO Travellers’ Collection With Mexico, Spain and Sweden Summer Edition Nicotine Pouches
British American Tobacco (BAT) Global Travel Retail has expanded the VELO Travellers’ Collection with three new Summer Editions: Mexico, Spain and Sweden. Inspired by destination themes, the new nicotine pouch variants are designed for global travel-retail channels. The launch further strengthens VELO’s positioning as a travel-retail exclusive product collection.
Aug.27
PMI CEO Attends Opening of IQOS Global Flagship in Tokyo’s Ginza as 1,814 Limited ILUMA i PRIME Sets Launch
PMI CEO Attends Opening of IQOS Global Flagship in Tokyo’s Ginza as 1,814 Limited ILUMA i PRIME Sets Launch
IQOS opened its first global flagship, IQOS Flagship Ginza, in Tokyo on September 4, 2026, replacing the former IQOS Store Ginza after nearly a decade of operation. The new location expands conventional product retail into member lounges, digital experiences, art installations and brand programming. IQOS also launched a Ginza-exclusive IQOS ILUMA i PRIME set limited to 1,814 individually numbered units, priced at JPY11,980, or about US$77. PMI Sales Strategy Consultant Yuji M. later said on LinkedIn that more than 500 people had lined up from the night before the opening.
Sep.07
How Many Nicotine Pouch Factories Does Europe Need? 2Firsts Interviews AIRSCREAM on the OEM Market
How Many Nicotine Pouch Factories Does Europe Need? 2Firsts Interviews AIRSCREAM on the OEM Market
At InterTabac 2026, nicotine pouch growth was visible not only in brands but across equipment, raw materials and OEM manufacturing. 2Firsts interviewed AIRSCREAM commercial head Steve Moore on how many pouch factories Europe may ultimately need and where manufacturers can differentiate, from formulation and flavour to pouch materials, production consistency and customer service. The category continues to expand, but questions remain over future capacity, consolidation and the long-term structure of the supply chain.
Sep.18