The Harmful Impact of Sin Taxes on E-Cigarettes in Quebec

Dec.15.2022
The Harmful Impact of Sin Taxes on E-Cigarettes in Quebec
Quebec's smoking population is decreasing, with e-cigarettes proving more effective than traditional methods. Taxing e-cigarettes may increase risks and harm small businesses.

Smoke-free Quebec has always been our common goal. The smoking population in Quebec continues to decline, reducing the risk of serious illness caused by combustible tobacco for Quebecers. The Canadian Vaping Association opposes nationwide taxation on e-cigarette products, as this would have unintended consequences and increase risks for young people. E-cigarettes are an effective harm reduction product with a quit rate twice that of patches and gum. This innovative product has contributed to Quebec's economic growth. Tobacco control requires viable solutions, such as using e-cigarettes to help adult smokers quit. Increasing the cost of e-cigarette products, like traditional cigarettes, will not help the country achieve its goal of a smoke-free future.


Electronic cigarettes have the potential to help almost 1.3 million Quebec residents who currently smoke by providing them with a less harmful alternative to combustible tobacco. These products are subject to both provincial and federal regulations, which prohibit sales to minors, require ID for those under 25, feature warning labels about nicotine addiction on their packaging, and limit the use of certain texts and graphics. Candy, soft drink, and cartoon character imagery are prohibited from being used in marketing materials. In Quebec, e-cigarette products come from reliable sources and are subject to rules that are often stricter than those governing other legal substances. The strong regulations implemented by Canada to protect youth will be undermined by the emergence of a large illicit market resulting from punitive taxes.


Throughout the implementation of the federal consumption tax, the Canadian Vaping Association has issued a warning to the federal government that harsh taxation will lead to an increase in smoking, a large illegal market, and weakened protection for young people. With Quebec announcing its intention to join the consumption tax system, Quebecers will be paying nearly double the tax rate. Certain categories of e-cigarette products will become more expensive than traditional cigarettes. The introduction of an e-cigarette tax is meant to achieve health goals, particularly to prevent young people from using e-cigarettes. Levying provincial consumption tax on harm reduction products has a negative impact on Canada's tobacco control strategy, which is aimed at helping Canadians who smoke quit or reduce the harm caused by nicotine addiction.


The Canadian Ministry of Health recently reviewed the Tobacco and Vaping Products Act (TVPA) and suggested that more ongoing public education and awareness efforts should be made to inform young people and non-tobacco users about the health risks associated with vaping. Additionally, the majority of adult smokers are unaware that vaping is less harmful than smoking tobacco products. The ministry suggested launching efforts to communicate the relative risks between smoking and vaping to smokers. The impression given by the imposition of a "sin tax" on vaping is that it is just as harmful as smoking and therefore does not benefit public health. This indirect messaging may discourage smokers from switching to vaping and reinforce misunderstandings about the risks associated with vaping.


Furthermore, without coordination from all provinces, the potential outcome of Quebec's taxation could result in the closure of local small-scale electronic cigarette businesses, while businesses in other provinces and the black market will satisfy demand for electronic cigarette products. "On top of federal taxation, individual provinces imposing punitive tariffs could reach the Laffer peak of local revenue. Such taxes will redirect purchases from in-province resources to online out-of-province suppliers and the black market," said Professor Ian Irvine when discussing Canadian consumption taxes.


CVA has proposed several practical and less harmful solutions to protect adolescents. Education, prevention, and enforcement are the best tools to protect young people from nicotine temptation. With recent regulatory changes, the illegal market for e-cigarette products has grown exponentially. More resources are needed to enforce this market. At present, the prevalence of illegal products makes it convenient for young people as illegal sellers do not check IDs. Imposing high taxes on e-cigarettes will accelerate the growth of this market and repeal years of regulation aimed at protecting young people.


Nova Scotia is the first province to introduce both an e-cigarette tax and flavor ban. These measures, combined, have decimated the e-cigarette industry in Nova Scotia, with cigarette sales increasing by 5.6%. The ban on flavors ensures the existence of a black market and increases cross-province sales. Professor Irvine of Concordia explains, "E-cigarettes and combustible cigarettes are substitutes, so keeping taxes on low-risk products low is crucial in encouraging smokers to switch to low-risk products." The Quebec government must consider the potential return of combustible tobacco and the increase in enforcement demands after consumption taxes. "Tobacco and nicotine taxation are a joint jurisdiction, and if provinces decide to match federal taxation, the industry will shrink significantly. The best estimate is $396 million in additional taxes and $609 million in supplier revenue loss," he estimates. This will have a devastating impact on Quebec's small e-cigarette businesses and public health.


We need this data so that Canadians and regulatory agencies can fully understand the impact of these policies. Research on three U.S. states with similar policies found that bans on flavored tobacco and taxes led to an increase in smoking rates among both adults and youth populations.



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.

Special Report|From CrossBar 20K to 6-Methyl Nicotine KUMI: Two Routes Into U.S. State Vape Directories?
Special Report|From CrossBar 20K to 6-Methyl Nicotine KUMI: Two Routes Into U.S. State Vape Directories?
Several U.S. states have incorporated the September 9, 2020 PMTA filing deadline into eligibility rules for certain vaping products. CrossBar 20K drew attention after appearing on Pennsylvania's 163-entry directory. A broader 2Firsts investigation found that related registration businesses also listed KUMI and CROSSBAR SIX products, with 171 KUMI-related entries across Louisiana, Nebraska and Wisconsin. Corporate records link Scott Silverman to Blue Nine LLC and VR Products I LLC. PMTA compliance expert Mr. K said historical applications and nicotine-analogue products may offer two different approaches to state-directory access.
Regulations
Oct.26
Couche-Tard Posts Double-Digit U.S. Same-Store Growth in Other Nicotine Products, Led by Pouches
Couche-Tard Posts Double-Digit U.S. Same-Store Growth in Other Nicotine Products, Led by Pouches
Alimentation Couche-Tard said U.S. same-store sales in its “other nicotine products” category grew at a double-digit rate in the first quarter of fiscal 2027, led by nicotine pouches, while overall U.S. same-store merchandise revenues increased 1.7%. The company also said its Canadian nicotine business continued to face regulatory pressure and illicit-market headwinds. The U.S. performance coincides with Couche-Tard's participation in efforts to reopen Canadian convenience-store access to authorized nicotine pouches, though the company has not established a direct causal link between the two.
Sep.14
NAS 2026 | Former FDA Tobacco Chief Mitch Zeller Calls for Shift From “End Game” to “End State”
NAS 2026 | Former FDA Tobacco Chief Mitch Zeller Calls for Shift From “End Game” to “End State”
At the 2026 New Approaches Summit in New York, former FDA Center for Tobacco Products Director Mitch Zeller called for the tobacco harm reduction debate to shift from the traditional “end game” toward defining a desired “end state.” He also highlighted unresolved concerns around dual use, argued that biomarkers of exposure may be more meaningful than cigarettes-per-day in assessing risk reduction, and said nicotine misperceptions remain a major barrier to public health progress.
Sep.25
Product | Philip Morris Korea Launches Two TEREA ONYX Capsule Tobacco Sticks, Expanding Portfolio to Five Lines
Product | Philip Morris Korea Launches Two TEREA ONYX Capsule Tobacco Sticks, Expanding Portfolio to Five Lines
Philip Morris Korea launched TEREA ONYX, a new tobacco stick line for IQOS ILUMA devices, on October 15, 2026. The initial products, AMANG PEARL and CALI PEARL, feature tropical-inspired flavors, Fresh Filters and capsules designed to deliver different flavor experiences before and after activation. Both are priced at KRW 4,800 per pack and are available at convenience stores nationwide and IQOS-operated stores in South Korea. The launch expands the Korean TEREA portfolio from four product lines to five, following earlier capsule tobacco stick additions in 2026.
product
Oct.23
Germany Probes 7.6 Million Illegal Vape Case With Estimated €33.3 Million Tax Loss; Four Chinese Manufacturer Employees Under Investigation, Some Packaging in Enforcement Images Resembles FUMOT Products
Germany Probes 7.6 Million Illegal Vape Case With Estimated €33.3 Million Tax Loss; Four Chinese Manufacturer Employees Under Investigation, Some Packaging in Enforcement Images Resembles FUMOT Products
German prosecutors and customs authorities are conducting a criminal investigation into an alleged cross-border organised vape network. Authorities say that between January 2024 and March 2025, four employees of an unnamed Chinese e-cigarette manufacturer allegedly built a network of sales agents and wholesalers that brought more than 7.6 million nicotine disposable vapes into Germany, causing an estimated €33.3 million in excise-tax losses. The manufacturer has not been named. Some products visible in enforcement images have packaging resembling products from FUMOT’s portfolio. European regulatory records from 2024, FUMOT’s public overseas-sales materials and records involving German vape importer and distribution company Zamu-Pro GmbH also show FUMOT/RandM products and German distribution activity during the period covered by the investigation.
Sep.21
Japan Survey Finds 49.5% Would Cut Tobacco Use if Prices Rise, 64.6% Show Interest in Nicotine-Free Alternatives
Japan Survey Finds 49.5% Would Cut Tobacco Use if Prices Rise, 64.6% Show Interest in Nicotine-Free Alternatives
A September online survey commissioned by Japanese smoking-accessories company Lightec found that 49.5% of respondents would consider reducing tobacco use if prices rose further, while 25.1% would consider switching to cheaper brands and 14.5% would consider using or combining alternatives such as vapes and nicotine-free herbal sticks. Another 64.6% expressed some level of interest in such alternatives. The survey covered 1,088 respondents aged 20 to 70 and was conducted by a company that sells NICOLESS nicotine-free vaping and herbal-stick products, meaning its findings should not be treated as representative of Japan's smoking population.
DATA
Oct.12