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

Turning Point Brands Reports Q1 2026 Net Sales of $124.3 Million as Modern Oral Net Sales Rise 133%
Turning Point Brands Reports Q1 2026 Net Sales of $124.3 Million as Modern Oral Net Sales Rise 133%
Turning Point Brands reported first-quarter 2026 results on May 7, covering the period ended March 31, 2026. Total consolidated net sales were $124.3 million, up 16.8% year on year. Gross profit was $68.3 million, up 14.6%, while net income fell 19.0% to $11.7 million. Adjusted EBITDA declined 6.5% to $25.9 million.
May.08 by 2FIRSTS.ai
 FDA Begins Review of 22nd Century’s VLN MRTP Renewal Applications
FDA Begins Review of 22nd Century’s VLN MRTP Renewal Applications
The U.S. Food and Drug Administration (FDA) has initiated scientific review of renewal applications for 22nd Century Group’s VLN reduced-nicotine cigarettes under the Modified Risk Tobacco Product (MRTP) pathway, with current authorizations set to expire in December 2026.
News
May.13
Moscow Police Seize About 65,000 E-Cigarettes Worth More Than RUB 30 Million
Moscow Police Seize About 65,000 E-Cigarettes Worth More Than RUB 30 Million
Russian Interior Ministry spokesperson Irina Volk said on May 6 that police in Moscow seized about 65,000 nicotine-containing products from a man during searches of residential and warehouse premises. The products were valued at about RUB 30 million, or about USD 395,727 based on an exchange rate of USD 1 = RUB 75.81.
May.11 by 2FIRSTS.ai
UK Retailers Call on Government to Better Resource Trading Standards to Fight Illicit Tobacco and Vape Trade
UK Retailers Call on Government to Better Resource Trading Standards to Fight Illicit Tobacco and Vape Trade
Retailers in the UK have called on the government to provide greater resources to Trading Standards in response to the growing trade in illicit tobacco and vapes. Fed national vice-president Hemanshu Patel made the call during a panel discussion at the National Convenience Show in Birmingham on April 15.
Apr.21 by 2FIRSTS.ai
2Firsts Data|China Vape Exports Sink to Three-Year April Low After Tax Rebate Ends, Falling to $694 Million
2Firsts Data|China Vape Exports Sink to Three-Year April Low After Tax Rebate Ends, Falling to $694 Million
China’s e-cigarette export value declined to $694 million in April 2026, marking the lowest April level in the past three years. The data is notable because April was the first full month after China removed export VAT rebates for certain e-cigarette products. Compared with April 2025, export value fell 20.9%; compared with April 2024, it was down 22.3%. Month-on-month, exports dropped 23.2% from March 2026.
Special Report
May.23
U.S. Military Nicotine Policy Sparks Debate as Nicotine Pouches Enter Discussion
U.S. Military Nicotine Policy Sparks Debate as Nicotine Pouches Enter Discussion
An opinion article published by Stars and Stripes argued that the Pentagon’s January nicotine clinical guidelines overemphasize abstinence, fail to reflect the reality that about 30% of active-duty personnel use nicotine, and do not address nicotine pouches as potential harm-reduction products.
Industry Insight
Jun.08