| Section | Link to Section |
|---|---|
| Ontario Vapers | Ontario Vapers Will Pay Double The Present Federal Tax. |
| Vape Taxes | Vape Taxes In Different Provinces |
Ontario will work with Canada's national government to increase the tax on all vaping goods sold in the province. Ontario is the most populated Canadian province, with around 15.6 million people.
The tax was introduced last week in Ontario Finance Minister Peter Bethlenfalvy's autumn economic update. There were no timeframe specifics provided. Ontario Premier Doug Ford—who would have approved any new tax plan—had previously received praise from the vaping sector for his "balanced" approach to vaping regulation.
The federal/provincial tax "partnership" system, which the federal government proposed in 2022, permits provinces to simply double the present federal vape tax and keep half of the profits. The federal government handles all of the labor, making this an almost enticing option for cash-strapped provincial governments.
Ontario Vapers Will Pay Double The Present Federal Tax.
All bottled e-liquid and prefilled vaping items sold in Canada are subject to the current federal tax, which has been in effect since October 2022. The tariff applies to all items, including those containing nicotine.
The federal tax is $1 per two milliliters (or fraction thereof) for the first 10 mL of e-liquid in a sealed container (bottle, pod, cartridge, etc.), and $1 per 10 mL for any extra liquid (beyond the first 10 mL) in the container. Prices in Ontario will treble when the federal-provincial tax "partnership" takes effect.
So, instead of paying an additional $7 in taxes on a 30 mL container of vape juice, as all Canadian vapers already do, Ontario buyers would pay a double tax of $14. Instead of paying an additional $1 for each prefilled pod, Ontario vapers will pay $2.
The Ford administration is justifying the provincial cash grab as a health policy aimed at reducing young vaping and preventing vapers from following a "gateway" to smoking. "Research suggests that youth vaping can lead to smoking," said the financial report.
However, considerable research has shown that every restriction on vaping products, including taxes, boosts cigarette sales and smoking. Vapes and cigarettes are economic alternatives, thus rules or restrictions that make one more expensive or difficult to get will boost the sales of the other.
"Ontarians who vape deserve so much better than to be treated as a piggy bank to fill government coffers," said Maria Papaioannoy, spokesperson for Rights4Vapers, a Canadian vaping advocacy organization. "All we want is an affordable alternative to smoking."
Vape Taxes In Different Provinces
Physicians for a Smoke-Free Canada reports that Alberta and Prince Edward Island are also contemplating joining the federal-provincial tax arrangement. British Columbia, Newfoundland and Labrador, Nova Scotia, and Saskatchewan all have provincial vaping levies that predate the federal tax.
Quebec, which recently outlawed flavored vaping goods, has revealed plans to institute a new provincial vape tax in 2024. Quebec is Canada's second most populated province.
