Canada’s 2021 federal budget revealed the government’s plans to introduce a “new taxation framework” to start imposing excise tax on vaping products in 2022.
If the 2021 budget is passed, the new tax, which would be a flat rate tax on every 10 ml. of vaping liquid or fraction thereof, would apply to vaping liquids made in Canada or imported and intended for use in Canada. Also, the tax would apply whether or not the vaping liquids contain nicotine. Cannabis-based vaping products would be exempt from the new tax as they are already subjected to cannabis excise tax.
The government also plans to increase the tax on tobacco products by C$4.00 per carton of 200 cigarettes. The increased tobacco tax will bring the government more than C$2.1 billion over 5 years.