Excise tax Explained:The Canadian federal government is introducing an excise tax that will require every e-liquid bottle, disposable or pre-filled pod sold within Canada to be excise-duty stamped (similar to the excise stickers found on tobacco and cannabis products)
The tax will be applied at the manufacturer/distributor level and will not show up on your receipt. Cost Of New Tax:- $1 per 2mL on the first 10mL of e-liquid (or pod, or disposable) (effectively, $5 on the first 10mL of a bottle)
- $1 per 10mL above the first 10mL
This will effectively add $7 in tax on a 30mL bottle, $10 in tax on a 60mL bottle, and $16 in tax on a 120mL bottle.
Bottle Size Federal Excise Tax Per Bottle
30mL + $7.00
60mL + $10.00
120mL + $16.00
This still makes vaping a more cost effective option than cigarettes. Comparatively, A pack a day smoker will spend on average $126 on cigarettes vs. $30 on e-liquid in the same 1-week period.When does this begin?As of October 1st, 2022 manufacturers will have to start duty-stamping products. Retailers are permitted to sell non-stamped products
purchased before October 1st until January 1st. As of January 1st, all e-liquid sales in Canada must be excise stamped.We will have enough non-stamped product to get as close to Jan 1 without charging the excise tax.
However, as inventory depletes, products will appear with the excise tax and stamp added on.