Vapers, Prepare for Change: Understanding the New E-Liquid Excise Taxes
Vaping enthusiasts across Canada, it's time to talk about some significant changes that will impact your wallet. New excise taxes on e-liquids are rolling out, and they're set to substantially increase the cost of your favourite products. Let's break down what's happening and when.
The Harmonized Excise Tax (HET): A Double Whammy
The core of these changes revolves around the introduction of the Harmonized Excise Tax (HET). Essentially, this new tax doubles the existing federal excise tax rate in participating provinces and territories. This, combined with a separate federal increase, means a significant financial shift for vapers.
Where and When Are These Changes Happening?
- Currently in Effect (July 1, 2024):
- Quebec, Ontario, Nunavut, and the Northwest Territories have already implemented the HET.
- If you're in these regions, you've likely noticed the price increases at your local vape shop. The doubled tax is already being reflected in retail prices.
- Coming January 1, 2025:
- Alberta, Manitoba, New Brunswick, Prince Edward Island, and Yukon will adopt the HET.
- Retailers in these areas will begin transitioning their stock. You'll likely see a period where products with the old federal stamps are sold alongside those with the new provincial/territorial stamps.
- Expect to see price increases in the weeks leading up to January 1, 2025, as retailers get ready for the switchover.
Full Implementation (April 1, 2025):
It is important to note that after April 1, 2025, the new taxes will fully take effect. This means that all older products will be removed from retail shelves, and only the new provincially stamped product will be available.
- Nationwide Federal Increase:
- Regardless of the HET, a federal excise tax increase took effect on July 1, 2024, impacting all provinces and territories.
- This federal increase is applied before the HET, meaning that all regions will experience a tax increase, and the regions with the HET, will have an even higher tax increase.
What This Means for Your Wallet
The combined impact of these tax changes will lead to a considerable increase in the cost of e-liquids and disposable vapes. It's crucial to factor these changes into your budget.
Tax by Volume: A Closer Look
- Tax by Volume (Effective July 1, 2024):
- Quebec, Ontario, Nunavut, Northwest Territories:
- 30ml: $15.68
- 60ml: $22.40
- 120ml: $35.84
- 20ml Disposable: $13.44
- 3 pack of 2ml pods: $13.44
- Quebec, Ontario, Nunavut, Northwest Territories:
- Tax by Volume (Starting January 1, 2025):
- Alberta, Manitoba, New Brunswick, Prince Edward Island, Yukon:
- 30ml: $15.68 (Increased from $7.84)
- 60ml: $22.40 (Increased from $11.20)
- 120ml: $35.84 (Increased from $17.92)
- 20ml Disposable: $13.44 (Increased from $6.72)
- 3 pack of 2ml pods: $6.72 (Increased from $3.36)
- Alberta, Manitoba, New Brunswick, Prince Edward Island, Yukon:
Stay Informed
As these changes unfold, it's essential to stay informed. Keep an eye on updates from your local retailers and official government sources. Understanding these tax changes will help you plan your purchases and navigate the evolving vaping landscape.
If you have any questions, please feel free to visit us in-store, contact us through our website, or call us in-store. We'll be happy to answer all questions related to the new tax changes.