Department of Finance Canada said the government released draft regulations on coordinated vaping taxation framework.
In 2022, 30 per cent of youth aged 15 to 19 (631,000 youth), and 47.5 per cent of those aged 20 to 24 (1.1 million young adults) reported ever vaping, compared to just 14.7 per cent (4 million adults) for Canadians aged 25 and older.
In Budget 2021, the government announced both the introduction of a new taxation framework for the imposition of excise duties on vaping products in 2022, and its intention to work with any provinces and territories interested in a federally coordinated approach to taxing these products.
As of July 1, 2024, any vaping product manufactured in, or imported into, Canada and destined for the duty-paid market of a participating jurisdiction (Ontario, Quebec, the Northwest Territories, and Nunavut) must bear an excise stamp specific to that province or territory.
For affected producers and sellers, the main issue is how the duty or relief changes remittance obligations, pricing, and compliance.