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.

German Tobacco Tax Revenue Falls 10.8% Through August as Tax-Paid Cigarette Volume Drops 12.6%
German Tobacco Tax Revenue Falls 10.8% Through August as Tax-Paid Cigarette Volume Drops 12.6%
Germany collected €9.789 billion in total tobacco tax revenue from January through August 2026, down 10.8% from a year earlier, according to the Federal Ministry of Finance. Germany's tobacco tax base covers not only cigarettes and fine-cut tobacco but also heated tobacco and vaping liquids taxed as tobacco substitutes. The German Association of the Tobacco Industry and Novel Products, or BVTE, citing federal statistical data, said tax-paid cigarette volume fell 12.6% to 40.6 billion sticks. BVTE is using the latest figures to argue against further tax increases planned from 2027 through 2030, while Germany's parliament is scheduled to hold a first reading of the bill on September 24.
Sep.23
JTI Invests ₱2.1 Billion to Upgrade Batangas Manufacturing Hub, Adds First Southeast Asia DIET Facility
JTI Invests ₱2.1 Billion to Upgrade Batangas Manufacturing Hub, Adds First Southeast Asia DIET Facility
JTI Asia Manufacturing Corp. has invested ₱2.1 billion, or about $37 million, in its manufacturing site in Malvar, Batangas, Philippines, to expand tobacco-processing capabilities. About ₱1.9 billion is allocated to JTI's first Dry Ice Expanded Tobacco, or DIET, facility in Southeast Asia, while more than ₱177 million has been spent on expanding its Controlled Atmosphere treatment facility. The Batangas plant supplies the Philippine market and exports to 22 overseas markets, making it one of JTI's key manufacturing hubs in Asia.
Sep.24
Cochrane 2026 Update Adds Nine Trials, Keeps High-Certainty Finding That Nicotine E-Cigarettes Improve Quit Rates Over NRT
Cochrane 2026 Update Adds Nine Trials, Keeps High-Certainty Finding That Nicotine E-Cigarettes Improve Quit Rates Over NRT
Cochrane’s 2026 update of its living review on electronic cigarettes for smoking cessation included 80 randomized controlled trials involving 29,861 adult smokers, with nine trials added in this update. The review retained its high-certainty conclusion that nicotine e-cigarettes increase smoking cessation rates compared with nicotine replacement therapy. In absolute terms, about 10 in 100 people using nicotine e-cigarettes may quit smoking for at least six months, compared with about 6 in 100 using NRT. The review found no clear difference in serious adverse event rates between the two groups, while longer-term safety and the relative effectiveness of newer device types remain less certain.
Sep.07
From Product Innovation to Integrated Solutions: NEXTECH Expands Its Global Heated Tobacco Solutions
From Product Innovation to Integrated Solutions: NEXTECH Expands Its Global Heated Tobacco Solutions
NEXTECH launched its NEXE Pro circumferential-heating tobacco stick globally at InterTabac 2026, as the company expands from product innovation into broader heated tobacco solutions. Amid intensifying competition across global HTP markets, NEXTECH is strengthening its R&D, manufacturing and pre-launch support capabilities to serve different types of business customers.
Industry Insight
Sep.15
Gallup Tracks Nicotine Pouch Use for the First Time: 11% of U.S. Adults Smoke, 9% Vape and 4% Use Nicotine Pouches
Gallup Tracks Nicotine Pouch Use for the First Time: 11% of U.S. Adults Smoke, 9% Vape and 4% Use Nicotine Pouches
Gallup’s 2026 Consumption Habits survey tracked nicotine pouch use for the first time. The survey found that 11% of U.S. adults reported smoking cigarettes in the past week, 9% reported vaping, and 4% reported using nicotine pouches. Cigarette smoking remained near Gallup’s long-term low, while adult vaping rates stayed relatively stable in recent years.
Market
Aug.25 by 2Firsts Perspectives
Australian Coalition Unveils Illicit Tobacco Plan With 80% Excise Cut and Legal, Taxed Vapes and Nicotine Pouches
Australian Coalition Unveils Illicit Tobacco Plan With 80% Excise Cut and Legal, Taxed Vapes and Nicotine Pouches
Australia’s Coalition has unveiled a national illicit-tobacco policy that would cut tobacco excise by 80% and create legal, regulated and taxed adult markets for vaping products and nicotine pouches if it wins government. The plan proposes an excise of A$0.50 per millilitre of e-liquid and A$0.025 per milligram of nicotine in pouches, alongside A$200 million in additional enforcement and a A$60 million three-year public-awareness campaign. The Coalition says the package would narrow the price advantage of illicit products and undermine organised crime, while Labor and public-health groups warn that dramatically cheaper cigarettes could reverse long-term declines in smoking.
Sep.03