Decoding The New Federal Vaping Tax

Decoding The New Federal Vaping Tax

The Joint CannabisDec 6, '22

You’ve heard the news—a new vape tax is coming. In Budget 2022, the federal government proposed a new tax for all vaping liquids in Canada. And it’s already on the way. 

Here’s the important thing to note: This tax only applies to e-liquids that contain nicotine. It does not apply to products that contain THC. That’s because an excise duty already exists for cannabis-infused vaping liquids. 

So, if you only vape THC e-liquids, you’ll pay the same amount as before.

But if you vape e-liquids with nicotine, you’ll be paying more for these products in the coming months. You’ll also notice a new stamp on the product package.

Which products does this apply to, exactly? And how much more will you be paying? Let’s unpack the new excise duty on vaping products:


What Is the New Tax?

The excise duty applies to all vaping liquids, either manufactured in Canada or imported into Canada. This new tax will be paid by manufacturers, which means the extra costs will trickle down to consumers. 

Any vaping liquid that contains nicotine is subject to this tax. Vaping liquids include:

  • Disposable vapes
  • Pods
  • Bottles of e-liquids
  • This new tax was implemented on October 1, 2022. But consumers won’t feel the effects until the start of the new year. Why? Because retailers can still sell their existing stock of products manufactured before that date at their original price until December 31, 2022. 

    Starting in 2023, all e-liquid vaping products will be subject to the new tax. 


    What Will It Cost?

    Trying to gauge how this increase will affect your budget? Let’s break it down by cost per mL of liquid. Here’s how to calculate the taxes you’ll pay on e-liquids:

    For every 2mL of vaping liquid you purchase, you’ll pay an additional $1 in tax up to the first 10mL

    After that, you’ll pay $1 per 10mL

    For example, if you buy 6mL of e-liquid, you’ll pay $3 in tax. If you buy 30mL, you’ll pay around $7 in tax.

    As you can see, the tax can be pretty substantial if you’re a frequent vaper. 


    How Will It Affect Me?

    You might be thinking to yourself, “These taxes are too high. I’m going back to cigarettes!”

    But consumers, take note: even with the new tax, vaping is still cheaper than smoking cigarettes. So don’t drop your vape in favour of cartons just yet!

    And remember, you’ll only pay the tax on e-liquids; it doesn’t apply to any vaping hardware you purchase, from coils to batteries. 

    How will the tax affect vaping sales on the whole? You may be wondering if the rates of smoking will go up in response to this tax. We’ll see how things shape up over the next year. 

    There are also talks of the federal government imposing a flavour ban on vaping liquids containing nicotine, but that remains to be seen. As it stands, the federal government has announced plans designed to ensure that cannabis extracts cannot be sold with a flavour other than cannabis or menthol


    You can still stock up on your favourite e-liquids before this tax takes effect. At The Joint, we have Winnipeg cannabis locations all across the city. From Pembina Highway to Kenaston Boulevard, you’re sure to find a location near you. Stop by The Joint today!