Canada announces new federal excise duty and coordinated vaping tax regime

The Canadian government has announced a new federal excise duty on vaping products and is inviting provincial governments to participate in a new, coordinated, vaping taxation regime.

In its budget tabled in the House of Commons on 7th April, the government is proposing a federal excise duty rate of CAD1 ($0.79) per 2 ml, or fraction of 2 ml, for the first 10 ml of vaping substance, and CAD1 ($0.79) per 10 ml or fraction of that for volumes beyond that. The excise duty would take effect on 1st October, although retailers would be allowed to sell unstamped products that were in their inventory on that day until 1st January 2023.