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.

Tobacco Companies Are Redesigning Nicotine Products. BAT Wins Three Red Dot Awards
Tobacco Companies Are Redesigning Nicotine Products. BAT Wins Three Red Dot Awards
According to BAT and the Red Dot Design Award website, BAT’s glo Hilo Plus, Vuse Pro One Box and Vuse Ultra x McLaren F1 Team Limited Edition received Red Dot recognition in the Product Design 2026 competition.BAT said the awards reflect not only the design quality of the individual products but also the development of design as a core internal capability across industrial design, user experience and sustainability. Red Dot’s product pages describe glo Hilo Plus as a two-part tobacco heater with a pen and charging case, plus a touch-sensitive AMOLED display. Vuse Pro One Box is described as a rechargeable e-cigarette with replaceable pods, USB-C charging and a switchable VapourBoost mode. Vuse Ultra x McLaren F1 Team Limited Edition brings motorsport-inspired design elements into a compact e-cigarette device and includes exchangeable batteries.
Jul.17
Putin Signs Russia’s Tobacco and Nicotine Product Licensing Law, Banning Unlicensed Sales From 2027
Putin Signs Russia’s Tobacco and Nicotine Product Licensing Law, Banning Unlicensed Sales From 2027
Russian President Vladimir Putin has signed a law introducing mandatory licensing for wholesale and retail trade in tobacco and nicotine-containing products, with the system taking effect on October 1, 2026, and unlicensed operations banned from March 1, 2027, while vape and e-liquid retail may also face uncertainty from temporary regional sales-ban powers.
Jul.01
Product | YOOZ Launches Waker Electronic Shisha Device, Expanding Vape Applications Beyond Portable Devices
Product | YOOZ Launches Waker Electronic Shisha Device, Expanding Vape Applications Beyond Portable Devices
YOOZ has introduced the Waker Electronic Shisha device, expanding its vaping portfolio into the electronic shisha category. The device combines a rechargeable hardware platform with dedicated cartridges, featuring a 4,000mAh battery, up to 60W output power, and LED lighting effects. The product has appeared across multiple French retail channels, reflecting the continued expansion of vaping products into new consumption scenarios.
Jul.13
Former ATF Official’s Claims on Chinese Vape Companies and 6-Methyl Nicotine Fuel US Regulatory Debate
Former ATF Official’s Claims on Chinese Vape Companies and 6-Methyl Nicotine Fuel US Regulatory Debate
Former ATF Deputy Director Edgar Domenech has warned that some Chinese vape companies may be using 6-methyl nicotine, a nicotine analogue, raising new questions over how US regulators should classify emerging nicotine compounds.
Jul.13
Altria’s USSTC to Close Nashville Plant and Shift Operations to Kentucky by 2028
Altria’s USSTC to Close Nashville Plant and Shift Operations to Kentucky by 2028
U.S. Smokeless Tobacco Company (USSTC), a subsidiary of Altria Group, announced plans to close its Nashville manufacturing facility by 2028 and consolidate production operations at a new facility in Hopkinsville, Kentucky.
Market
Jun.02
Data|China’s May Vape Exports Fall 10.3%; January–May Shipments Slip 0.9%
Data|China’s May Vape Exports Fall 10.3%; January–May Shipments Slip 0.9%
China’s vape-related exports fell 10.25% year on year in May 2026, marking a second consecutive monthly decline, although exports recovered modestly from April. January-May exports totaled US$4.018 billion, down 0.86% from a year earlier and broadly in line with 2025 levels.
Special Report
Jun.29