Canada Increases Taxes on e-cigarette Products Starting July 1

Jul.11.2024
Canada Increases Taxes on e-cigarette Products Starting July 1
Canadian provinces raise taxes on e-cigarettes, with Ontario and Quebec doubling federal rates in new "tax partnership plan.

According to a report from Vaping360 on July 10th, starting from July 1st, all Canadians purchasing e-cigarettes will have to pay higher taxes, with significant increases in taxes on e-cigarettes in the country's two most populous provinces.


The Canadian government has increased the federal e-cigarette tax by 12% starting from July 1st. At the same time, the provinces of Ontario and Quebec have joined the federal government's "tax-partner plan," allowing participating provinces to double the tax rate and retain half of the revenue. Similarly, the two Canadian territories, the Northwest Territories and Nunavut, also joined the tax-partner plan on July 1st.


This collaborative plan was first announced in 2022, allowing provinces to collect tax revenue equal to federal taxes. For each province, this tax plan does not require any effort at all, as the federal government handles the collection and accounting of taxes, and simply sends half of the tax revenue to each province.


For financially struggling provinces, this is an arrangement that is almost irresistible, which is why four other provinces and one territory have agreed to join this tax plan on January 1, 2025: Alberta, Manitoba, New Brunswick, Prince Edward Island, and Yukon.


Last fall, when Ontario announced it would be joining the program, the conservative-led provincial government defended its decision to work with the national government controlled by the Liberal Party by calling the program a public health victory, stating it would reduce the phenomenon of youth vaping e-cigarettes.


The federal taxes paid by Canadians are as follows:


For the first 10 milliliters (or part thereof) in sealed containers (bottles, disposable products, pods or cartridges), a charge of 1.12 Canadian dollars is applied for every 2 milliliters; for each additional 10 milliliters (or part thereof) in the container, a charge of 1.12 Canadian dollars is applied for every 2 milliliters. The e-cigarette tax in Ontario, Quebec, the Northwest Territories, and Nunavut is twice that of other provinces. By January 2025, the taxes in Alberta, Manitoba, New Brunswick, Prince Edward Island, and Yukon will also double.


This tax applies to all e-cigarette products that contain e-cigarette liquid, regardless of whether they contain nicotine. The tax is to be paid by manufacturers when the products are imported or sold wholesale.


Starting from July 1st, new products will be taxed at a higher rate (usually passed on to consumers), but can still be sold at the old tax rate within the 90 days before the products enter the supply chain. Therefore, consumers may encounter products with the old tax rate retained in the prices in the next three months.


In general, a 30ml bottle of bottled e-cigarette liquid will result in all Canadians paying an additional $7.84 in federal taxes (an increase of $0.84 from July). A disposable e-cigarette with 5ml will be taxed at $3.36, while a pack of four refill pods containing less than 2ml of e-cigarette liquid will have a federal tax of $4.48. Consumers in Ontario, Quebec, the Northwest Territories, and Nunavut will pay twice the tax on these products compared to other provinces.


The provinces of British Columbia, Newfoundland and Labrador, Nova Scotia, and Saskatchewan, which do not participate in the federal carbon pricing plan, already have their own provincial taxes. This means that consumers in those provinces will also be paying higher federal taxes.


We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

China Discloses First Criminal Case Over Counterfeit Vapes Disguised as “Medical Nebulizers” and “Zero-Nicotine” Products
China Discloses First Criminal Case Over Counterfeit Vapes Disguised as “Medical Nebulizers” and “Zero-Nicotine” Products
Chinese authorities have disclosed the country’s first reported criminal case involving counterfeit vapes marketed as “medical nebulizers” and “zero-nicotine” products. Authorities determined that the products involved were counterfeit vapes and pursued criminal charges for producing and selling counterfeit goods. According to the report, the case resulted in the seizure of 347,000 counterfeit vape pods and 53,700 vape devices, with physical goods valued at 22.13 million yuan.
Aug.04
Philip Morris Romania Expands IQOS Boutique Network to 120 Locations With Retail 2.0 Store
Philip Morris Romania Expands IQOS Boutique Network to 120 Locations With Retail 2.0 Store
Philip Morris Romania has opened IQOS Boutique Victoriei in Bucharest, expanding the country’s IQOS retail network to 120 points of sale and advancing a Retail 2.0 concept that combines design, technology, interactive art and urban culture.
PMI
Jul.13
Product | Summo 150K Introduces Refillable Design With Up to 150,000 Puffs, Exploring a New High-Capacity Vape Format
Product | Summo 150K Introduces Refillable Design With Up to 150,000 Puffs, Exploring a New High-Capacity Vape Format
Summo has introduced the Summo 150K Refillable Disposable Vape, entering the ultra-high-puff vape segment with a claimed capacity of up to 150,000 puffs. The device combines a 40ml dual e-liquid system, transparent tank design, dual mesh coils and a 900mAh rechargeable battery, using a refillable structure to differentiate itself from conventional disposable vapes. The product appeared on overseas online retail channels including Vapesourcing and VapeBarTime between late June and early July 2026.
Jul.22
UK Parliament Briefing Puts Vape Hardware Design and Materials in Regulatory Focus
UK Parliament Briefing Puts Vape Hardware Design and Materials in Regulatory Focus
The UK Parliament’s Parliamentary Office of Science and Technology (POST) has published a scientific briefing reviewing current evidence on the health effects of vape device components, including heating elements, power settings, metals, plastics, batteries and e-liquid ingredients, signalling growing regulatory attention to device design and whole-product systems beyond e-liquids, flavours and packaging.
Special Report
Jun.29
BofA Upgrades Imperial Brands, Says Market Overreacted to Australia Slump
BofA Upgrades Imperial Brands, Says Market Overreacted to Australia Slump
Bank of America upgraded Imperial Brands to “buy” from “neutral,” saying investors have overreacted to the tobacco group’s Australian business downturn and that the share-price pullback has created a more attractive entry point.
Jul.16
Chinese Disposable Brands OXBAR, LYCO Challenge Vuse and JUUL: Pennsylvania’s Pending List Offers a Glimpse of the Future Legal Vape Market
Chinese Disposable Brands OXBAR, LYCO Challenge Vuse and JUUL: Pennsylvania’s Pending List Offers a Glimpse of the Future Legal Vape Market
Pennsylvania’s June 26 ENDS Pending Certifications list previews the state’s future legal vape market, placing Vuse, JUUL and Logic alongside Chinese-linked disposable brands OXBAR and LYCO. Shaped by PMTA eligibility and state rules, the list shows competition shifting from market share to market access.
Special Report
Jul.06