According to Vaping360 on July 10, from July 1, all Canadians will pay higher taxes on vapes, and in the country’s two most populous provinces, the tax on vapes will increase significantly.
The Canadian government increased the federal vape tax by 12% from July 1. At the same time, Ontario and Quebec joined the federal government’s “Tax Partnership Program”, which allows participating provinces to double their tax rates and keep half of the tax. Similarly, two Canadian territories, the Northwest Territories and Nunavut, also joined the Tax Partnership Program on July 1.
The partnership program was first announced in 2022 and allows provinces to collect taxes equal to the federal tax. For the provinces, this tax plan does not require any effort at all. The federal government is responsible for collecting and accounting for the taxes and simply sends half of the taxes to the provinces.
It’s an almost irresistible arrangement for financially strapped provinces, which is why four other provinces and one territory have agreed to join the tax on Jan. 1, 2025: Alberta, Manitoba, New Brunswick, Prince Edward Island and Yukon.
Last fall, when Ontario announced it would join the program, the Conservative-led provincial government justified its partnership with the Liberal-controlled national government by calling it a public health win, claiming it would reduce youth vaping.
The federal taxes Canadians pay are as follows:
$1.12 per two milliliters for the first 10 milliliters (or fraction thereof) in a sealed container (bottle, disposable, cartridge or pod);
$1.12 per two milliliters for each additional 10 milliliters (or fraction thereof) in a container.
Ontario, Quebec, the Northwest Territories and Nunavut have vape taxes that are twice as high as those of other provinces. The tax will also double in Alberta, Manitoba, New Brunswick, Prince Edward Island and the Yukon by January 2025.
The tax applies to all vaping products that contain e-liquid, whether or not it contains nicotine. The tax is paid by manufacturers when the product is imported or sold at wholesale.
Starting July 1, new products will be taxed at the higher rate (the tax is usually passed on to consumers), but can still be sold at the old rate for 90 days before the product enters the supply chain. As a result, consumers may encounter product prices that retain the old tax rate over the next three months.
Overall, a 30ml bottle of e-liquid will cost all Canadians an extra $7.84 in federal taxes ($0.84 more than before July). A 5ml disposable vape will be taxed $3.36, while a package of four refill cartridges containing less than 2ml of e-liquid will have a federal tax of $4.48. For consumers in Ontario, Quebec, the Northwest Territories and Nunavut, all of these products will be taxed twice as much as in other provinces.
British Columbia, Newfoundland and Labrador, Nova Scotia and Saskatchewan, which are not participating in the federal partnership program, already have their own provincial taxes, which means consumers there will also pay new higher federal taxes.
As a well-known vape brand, Guutuu vapes will also be affected by this tax policy. Guutuu vapes are known for their high quality and innovative design, providing users with a safer and more convenient alternative to smoking. However, due to the increase in taxes caused by the new tax policy, the price of Guutuu vapes may be affected to a certain extent.
However, it is worth noting that these taxes are paid by manufacturers when the products are imported or sold wholesale. For consumers, these taxes are usually passed on to the selling price of the product. Therefore, the price of Guutuu vapes may increase accordingly to reflect the new tax costs.
Nevertheless, Guutuu vapes remains committed to providing customers with high-quality products and a premium smoking experience. As a well-known brand, Guutuu will continue to focus on product innovation and user needs to meet smokers’ needs for safer and more convenient smoking alternatives.
In general, the increase in Canada’s vape tax has had a certain impact on Guutuu and other vape brands. This tax policy aims to reduce the consumption of vapes to protect public health.
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