Market & regulatory data for the vapour sector in Canada

1st July 2024: Canada: Following the Budget 2024 receiving royal assent, starting today, the excise duty on vaping products increases to CAD1.12 (USD0.82) per 2 ml, or fraction thereof, for the first 10 ml of vaping substance and CAD1.12 per 10 ml, or fraction thereof, for amounts over the first 10 ml. Today also marks the implementation of the coordinated vaping taxation framework in Ontario, Quebec, the Northwest Territories, and Nunavut. The additional provincial excise duty replicates the federal duty in both amount and functioning.
20th June 2024: Canada: The Department of Finance has published draft regulations that would allow the implementation of the Coordinated Vaping Products Taxation Agreement in Alberta, Manitoba, New Brunswick, Yukon, and Prince Edward Island starting 1st January 2025. Ontario, Quebec, the Northwest Territories, and Nunavut are already parties to the taxation agreement. All Canadians and stakeholders can share feedback on these proposals by emailing Consultation-Legislation@fin.gc.ca by 22nd July 2024.
7th June 2024: Canada - Prince Edward Island: The minister of finance and minister of health and wellness announced that the province has signed the Coordinated Vaping Products Taxation Agreement with the government of Canada, which will be implemented from 1st January 2025.
5th June 2024: Canada - New Brunswick: The provincial legislative assembly approved bill 30 to amend the Tobacco and Electronic Cigarette Sales Act to strengthen the regulatory framework around the sale of tobacco, smoking supplies, e-cigarettes and e-liquids to improve overall compliance and protect the health of young people. The bill will require every vapour product retailer to be licensed and will also ban the use of vending machines. The minister of health will have the authority to create regulations requiring vendors, manufacturers or distributors of tobacco, smoking supplies and e-cigarettes (including e-liquids) to submit samples of their product to an inspector for testing. The cost of the licence will increase from CAD100 (USD73) to CAD200 (USD146). The amendments come into force on a day or days to be fixed by proclamation.
3rd June 2024: Canada - Newfoundland and Labrador: The provincial government of Newfoundland and Labrador has launched public consultations on potential legislative amendments related to tobacco and vaping products, with feedback being sought through an online questionnaire starting early June on engageNL.ca. Key topics include prohibiting tobacco sales to individuals born after a specific date, raising the legal tobacco purchase age to 21, and banning tobacco vending machines. Separate virtual sessions will be held for stakeholders and the public, and written submissions can be directed to tobaccoengagement@gov.nl.ca.
14th May 2024: Canada: The government published the Excise Duties on Vaping Products Regulations under the Excise Act to formalise and give legal effect to the decision of provinces and territories to join the coordinated vaping product taxation framework. The additional vaping duty would apply to any vaping product stamped on or after 1st July 2024. The regulations provide for a three-month transition period, during which vaping products that are stamped before 1st July 2024 – or that are imported or released under the Customs Act before that day – may be disposed of, sold, offered for sale, purchased and possessed up until 30th September 2024.
17th April 2024: Canada: The minister of finance presented the Federal Budget 2024, which aims to increase the vaping excise duty rates by 12%. This increase is the equivalent of CAD0.12 (USD0.09) in a non-participating jurisdiction, or CAD0.24 (USD0.17) in a participating jurisdiction. This measure would take effect on 1st July 2024, along with the implementation of a coordinated taxation regime in Ontario, Quebec, the Northwest Territories, and Nunavut. It is estimated that this measure would increase federal revenues by CAD310m (USD225m) over five years starting in 2024-2025. The government also proposes to amend the Tobacco and Vaping Products Act to allow information sharing between government departments for the effective administration and enforcement of the forthcoming tobacco cost recovery framework.
11th April 2024: Canada - Manitoba: The minister of finance introduced the Budget 2024, which indicates Manitoba’s intention to enter into a coordinated vaping product taxation agreement with the federal government. A provincial excise duty based on the volume of vaping substance in each vaping product will be applied in addition to the existing federal excise duty. The targeted implementation date is 1st January 2025.
27th March 2024: Canada - New Brunswick: The provincial government has introduced amendments to the Tobacco and Electronic Cigarette Sales Act to strengthen the regulatory framework around the sale of tobacco, smoking supplies, e-cigarettes and e-liquids to improve overall compliance and protect the health of young people. The proposed amendments would require every vapour product retailer to be licensed and would also ban the use of vending machines. The minister of health would have the authority to create regulations requiring vendors, manufacturers or distributors of tobacco, smoking supplies and e-cigarettes (including e-liquids) to submit samples of their product to an inspector for testing. The cost of licences would increase from CAD100 (USD74) to CAD200 (USD147).
20th March 2024: Canada - New Brunswick: The Department of Finance and Treasury Board presented the Budget 2024-2025, which indicates the province's intention to enter into a coordinated vaping product taxation agreement with the federal government. A provincial excise duty based on the volume of vaping substance in each vaping product will be applied in addition to the existing federal excise duty. The targeted implementation date is 1st January 2025.
20th March 2024: Canada - Yukon: The Legislative Assembly approved bill 35, which allows the government of Yukon to enter into an agreement with the government of Canada to join its coordinated vaping product taxation framework. The framework will double the existing federal tax on vaping products and Yukon will receive 50% of the revenue collected in the territory. The government of Yukon will not add its own tax to these products as part of the agreement. The new federal tax rates on vaping products are expected to apply starting 1st January 2025.
11th March 2024: Canada - Yukon: The government has introduced bill 35, which seeks to enter into a coordinated vaping taxation agreement with the government of Canada. Under this agreement, the current federal tax on vaping products sold in the Yukon would be doubled, with Yukon receiving 50% of the taxation revenue collected in the territory. If passed, the new tax rate will be implemented as early as 1st January 2025.

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