hen we want to purchase something, one of the major things – TAXATION. Tax decides how we are benefited, how much we can buy and how much we need to spend.
In this blog, we are going to talk exclusively about taxation and how the recent excise duty has changed things around. This article explores the federal and provincial frameworks and Provincial vape tax updates 2025.
1. Federal Excise Duty on Vaping Products
The federal government first implemented an excise duty framework on vaping products on October 1, 2022, through the Excise Act, 2001. This framework imposes duties on all vaping products intended for the duty-paid market, whether manufactured in Canada or imported.
As of July 1, 2024, Budget 2024 mandated updated tax rates, which are uniform nationwide unless a province participates in a coordinated system. From then we standard taxes are
- $1.12 per 2ml for the first 10ml of vaping substance
- $1.12 per 10ml for any quantity over the first 10ml
2. Coordinated Vaping Duty System
The federal government introduced the Coordinated Vaping Duty System, allowing provinces to join a harmonised framework where they apply an additional duty equal to the federal rate. Participating provinces share revenue with the federal government, and uniform rules are applied to both federal and provincial portions.
2.1 Participating Provinces and Territories
- As of July 1, 2024 the provinces of Ontario, Quebec, Northwest Territories and Nunavut have joined this system.
- Later on from January 1, 2025, we have Alberta, Manitoba, New Brunswick, Prince Edward Island and Yukon adding to the list.
2.2 Combined Rates in Coordinated Jurisdictions
These are just DOUBLE of federal rates
- $2.24 per 2ml for the first 10ml.
- $2.24 per 10ml for beyond the first 10ml.
3. Calculation of Duties
3.1 30 ml Bottle
Let us take a simple example of 30ml bottle. Here we need to understand the rate is different for first 10ml and different for the later.
- So for the first 10ml the tax is $1.12 × 5 (first 10ml) = $5.60
- Now we are left with 20ml, 2-10ml fractions. $1.12 x 2 = $2.24
- Total Duty: $7.84(for Non-Coordinated Province)
If the province is included in the then we have Federal: $7.84 + Provincial: $7.84 = Total Duty of $15.68.
3.2 60 ml Bottle
- For first 10ml it is same again as is $1.12 × 5 (first 10ml) = $5.60
- Next we have 50ml left where we have $1.12 x 5 = $5.60
- Total Duty: $11.20(for Non-Coordinated Province)
- If the province is included in the then we have Federal: $11.20 + Provincial: $11.20 = Total Duty of $22.40.
3.3 2ml pods of 20 quantity
Here, the total is 40ml. You may think of additional tax. But you are wrong, the tax is collected for each pod and is summed up
- $1.12 *20= $22.4 . This is for Federal tax.
- Now for provincial, we add the same amount of $22.4 and making a total tax of $44.8.
Let us now compare the taxes with a table if you are part of a participatory province of Alberta, Manitoba, New Brunswick, Northwest Territories, Nunavut, Ontario, Prince Edward Island, Quebec and Yukon:
|
Purchased individual Volume Range |
Federal Tax (12%) |
Provincial Tax (12%) |
Total Tax |
|
0.1-2ml |
$1.12 |
$1.12 |
$2.24 |
|
2.1- 4ml |
$2.24 |
$2.24 |
$4.48 |
|
4.1 - 6ml |
$.3.36 |
$3.36 |
$6.72 |
|
6.1 - 8ml |
$4.48 |
$4.48 |
$8.96 |
|
8.1 - 10ml |
$5.60 |
$5.60 |
$11.20 |
|
10.1 - 20ml |
$6.72 |
$6.72 |
$13.44 |
|
20.1 - 30ml |
$7.84 |
$7.84 |
$15.68 |
|
50.1 - 60ml |
$11.20 |
$11.20 |
$22.40 |
Conclusion:
As more provinces join the coordinated system, finding a vape economically is difficult. However, adapting to the new regime and new market conditions is a challenge which needs to taken for hassle-free vaping.
Furthermore:
At 89 Vape Shop we offer a wide range of disposables, vape pods, vape juices and many more vape devices along with FREE same day vape delivery and Canada-wide shipping.