New E-Cigarette Tax in Canada Starting 2022

Nov.30.2022
New E-Cigarette Tax in Canada Starting 2022
Canada's Cold Turkey e-cigarette store alerts customers to new federal consumption tax on e-liquid, effective October 1st, 2022.

Recently, a Canadian electronic cigarette retailer named Cold Turkey is warning its customers about the new federal consumption tax. Consumers will start experiencing the impact of this tax at the beginning of 2023.


It has been reported that tobacco and cannabis products sold in Canada come with a consumer tax stamp. Now, e-cigarette liquid will also have the same imprint. This means customers will need to pay additional taxes on e-cigarette liquid containing nicotine.


The consumption tax applies to all electronic cigarette liquid manufactured or imported into Canada, but does not apply to any electronic devices without electronic cigarette liquid, such as replacement coils or chargers.


The consumption tax on electronic cigarette liquid will come into effect on October 1st, 2022. All electronic cigarette liquid produced after this date will bear a new label.


The tax rate is determined by milliliters. The new tax rates are as follows:


Every 30 milliliters costs 7 Canadian dollars (approximately 37 Chinese yuan).


Every 60 milliliters cost 10 Canadian dollars (approximately 53 yuan in Chinese currency).


Every 120 milliliters costs 16 Canadian dollars (equivalent to approximately 84 Chinese yuan).


In addition to federal taxes, provinces also have the option to levy their own taxes. The rates will vary depending on each province and territory.


All new products are subject to this tax. However, existing stocks can be sold at the price set before the tax decision. E-liquids produced before October 1, 2022, can be sold at the original price until January 1, 2023.


The increase in taxation on e-cigarette products is linked to an increase in cigarette usage. This has led many consumers to question whether vaping is still a cheaper alternative to smoking. However, current data suggests that for the majority of consumers, even after factoring in the new taxes, e-cigarettes remain more affordable than smoking. The cost of one pack of cigarettes exceeds the cost of one bottle of e-liquid.


2FIRSTS will continue to cover this topic and provide further updates on the '2FIRSTSAPP'. Scan the QR code below to download the app.



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.

FDA Appoints Former Tobacco Enforcement Deputy Jessica Zeller as Director as Agency Weighs PMTA Framework Changes
FDA Appoints Former Tobacco Enforcement Deputy Jessica Zeller as Director as Agency Weighs PMTA Framework Changes
The U.S. Food and Drug Administration (FDA) has named Jessica Zeller director of the Center for Tobacco Products' (CTP) Office of Compliance and Enforcement (OCE), effective November 1, 2026. Zeller, the office's inaugural deputy director, returns from medical device manufacturer Edwards Lifesciences with more than 20 years of regulatory and legal experience. The appointment follows CTP leadership changes and adjustments to tobacco regulation. Bret Koplow became permanent CTP director in September; the FDA revised enforcement priorities for unauthorized e-cigarettes and nicotine pouches in May and announced faster PMTA review procedures. On September 28, the agency said it would evaluate changes to the existing PMTA regulatory framework, including potential rulemaking to replace it.
FDA
Oct.20 by 2Firsts Perspectives
EU Tobacco Tax Reform Stalls as Malta Withholds Support Despite Backing From 26 States
EU Tobacco Tax Reform Stalls as Malta Withholds Support Despite Backing From 26 States
EU finance ministers failed to reach agreement on tobacco excise reform at the November 9, 2026 Economic and Financial Affairs Council (ECOFIN) meeting in Brussels. The Irish Council presidency's compromise secured support from 26 of the EU's 27 member states, but Malta withheld consent, preventing the Council from reaching a general approach requiring unanimity. The reform would raise minimum taxes on conventional tobacco and bring e-cigarette liquids, heated tobacco and nicotine pouches into a common EU minimum excise framework. Finland and Estonia accepted further concessions during the meeting, while the presidency proposed separating the inclusion of nicotine pouches in the framework from setting their precise minimum tax rates. Another compromise would allow ten qualifying member states until 2036 to meet certain tobacco excise requirements. Ireland intends to continue negotiations in December.
Regulations
Nov.11
AIR Q3 Sales Rise 11%, but New Products Generate Just $2.1 Million in Nine Months as U.S. Vape Push Awaits FDA Review
AIR Q3 Sales Rise 11%, but New Products Generate Just $2.1 Million in Nine Months as U.S. Vape Push Awaits FDA Review
AIR Global PLC (NASDAQ: AIIR), a producer of flavored shisha tobacco and next-generation nicotine products, reported an 11.1% increase in third-quarter 2026 revenue to $99.8 million and a 7.7% rise in adjusted EBITDA to $30.9 million. Revenue for the first nine months increased 6.0% to $306.7 million, but the company posted a $74.2 million net loss, affected by listing-related expenses and other costs. Its New Growth Categories (NGC) business generated $2.1 million in nine-month revenue and an adjusted EBITDA loss of $10.8 million. AIR maintained its 2026 revenue growth guidance of 4%–6%, while lowering its capital expenditure outlook and raising its year-end leverage forecast from approximately 2.1 times to 2.5 times. The company has submitted a U.S. PMTA for its Crown Switch pod vape, with future contributions from new products dependent on regulatory progress and commercialization.
Capital Markets
Nov.13
Russia’s Vape Device Labeling Regime Enters Force: Registration Starts in September, Mandatory Coding in December
Russia’s Vape Device Labeling Regime Enters Force: Registration Starts in September, Mandatory Coding in December
Russia's digital labeling regime for reusable e-cigarettes and similar personal vaping devices entered its first mandatory phase in September 2026. From September 1, manufacturers, importers and other market participants must register with the national Chestny ZNAK tracking system. From December 1, newly manufactured and imported covered devices will be required to carry digital identification codes and be reported as entering circulation. Russia has also issued new operational guidance for imports, marking the transition from a voluntary pilot to phased mandatory implementation.
Sep.15
How Investors Are Repricing the Global Tobacco Industry as Nicotine Markets Shift
How Investors Are Repricing the Global Tobacco Industry as Nicotine Markets Shift
How are investors reassessing the global tobacco industry as nicotine markets evolve? In an interview with 2Firsts, Charlie Chen, Head of Research at CCB International Securities, forecasts annual growth of 30–50% for nicotine pouches, outpacing vaping and heated tobacco. He examines how regulatory enforcement, shifting market shares and new business models are influencing company valuations. The report also explores differences between multinational tobacco groups and Chinese companies, drawing on insights from the New Approaches Summit on profitability, investment strategies and industry consolidation.
Nov.11
Indiana Halts Sales of Elf Bar, Lost Mary, MR FOG and iJOY Vapes Under Foreign-Adversary Rules; Some Products Return After Compliance Filings
Indiana Halts Sales of Elf Bar, Lost Mary, MR FOG and iJOY Vapes Under Foreign-Adversary Rules; Some Products Return After Compliance Filings
Indiana's Alcohol and Tobacco Commission (ATC) ordered tobacco certificate holders in September to remove certain vaping products marketed under Elf Bar, Lost Mary, MR FOG, iJOY and other brands from inventory under the state's foreign-adversary product law. The agency later listed 257 MR FOG products and 77 Lost Mary product entries as lawful for sale. The Lost Mary revision expressly stated that compliance evidence had been received for 20 additional products. 2Firsts compliance expert Kurt said potential filings could include e-liquid and ingredient-origin records, U.S. nicotine-analog supply-chain documentation and FDA premarket application status.
Regulations
Oct.08