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VAPING EXCISE TAX

New Vaping Excise Tax: Increased Federal Excise & New Ontario Excise Tax

Effective July 1, 2024, the Ontario government will implement a new Provincial Vaping Excise Tax, which will match the rate of the Federal Excise Tax. This initiative aims to discourage vaping usage by significantly increasing the cost of ALL E-Liquid containing vape products. Additionally, the Federal Government will increase the existing Federal Vaping Excise Tax by 12%, also effective July 1, 2024.

ExciseTax2024

What Is The New Provincial Tax?

The forthcoming Provincial Vaping Excise Tax reflects Ontario's targeted response to escalating public health challenges associated with vaping. It is designed to reduce the financial appeal of vaping, thereby addressing its growing prevalence among youth and adults.

Business Compliance

From July 1, 2024, all businesses must apply the revised tax rates to their products or face serious penalties. Detailed guidelines will be provided by the government to ensure businesses follow the new tax regulations. 

Detailed Cost Outline:

We are dedicated to providing you with the highest quality information in order to help your purchasing decisions. With that in mind, here is a cost breakdown of the new Ontario Provincial Tax.

Vape products containing 0.1mL to 2mL of E-Liquid:

  • Current Federal Excise Tax: $1
  • Updated Federal Excise Tax (12% Increase): $1.12
  • New Provincial Excise Tax: $1.12
  • Total Updated Federal + Provincial Excise Tax (July 1st, 2024): $2.24

Vape products containing 2.1mL to 4mL of E-Liquid:

  • Current Federal Excise Tax: $2
  • Updated Federal Excise Tax (12% Increase): $2.24
  • New Provincial Excise Tax: $2.24
  • Total Updated Federal + Provincial Excise Tax (July 1st, 2024): $4.48

Vape products containing 4.1mL to 6mL of E-Liquid:

  • Current Federal Excise Tax: $3
  • Updated Federal Excise Tax (12% Increase): $3.36
  • New Provincial Excise Tax: $3.36
  • Total Updated Federal + Provincial Excise Tax (July 1st, 2024): $6.72

Vape products containing 6.1mL to 8mL of E-Liquid:

  • Current Federal Excise Tax: $4
  • Updated Federal Excise Tax (12% Increase): $4.48
  • New Provincial Excise Tax: $4.48
  • Total Updated Federal + Provincial Excise Tax (July 1st, 2024): $8.96

Vape products containing 8.1mL to 10mL of E-Liquid:

  • Current Federal Excise Tax: $5
  • Updated Federal Excise Tax (12% Increase): $5.60
  • New Provincial Excise Tax: $5.60
  • Total Updated Federal + Provincial Excise Tax (July 1st, 2024): $11.20

Vape products containing 10.1mL of 20mL E-Liquid:

  • Current Federal Excise Tax: $6
  • Updated Federal Excise Tax (12% Increase): $6.72
  • New Provincial Excise Tax: $6.72
  • Total Updated Federal + Provincial Excise Tax (July 1st, 2024): $13.44

Vape products containing 20.1mL to 30mL of E-Liquid:

  • Current Federal Excise Tax: $7
  • Updated Federal Excise Tax (12% Increase): $7.84
  • New Provincial Excise Tax: $7.84
  • Total Updated Federal + Provincial Excise Tax (July 1st, 2024): $15.68

Vape products containing 30.1mL to 40mL of E-Liquid:

  • Current Federal Excise Tax: $8
  • Updated Federal Excise Tax (12% Increase): $8.96
  • New Provincial Excise Tax: $8.96
  • Total Updated Federal + Provincial Excise Tax (July 1st, 2024): $17.92

Vape products containing 40.1mL to 50mL of E-Liquid:

  • Current Federal Excise Tax: $9
  • Updated Federal Excise Tax (12% Increase): $10.08
  • New Provincial Excise Tax: $10.08
  • Total Updated Federal + Provincial Excise Tax (July 1st, 2024): $20.16

Vape products containing 50.1mL to 60mL of E-Liquid:

  • Current Federal Excise Tax: $10
  • Updated Federal Excise Tax (12% Increase): $11.20
  • New Provincial Excise Tax: $11.20
  • Total Updated Federal + Provincial Excise Tax (July 1st, 2024): $22.40

The Consequences

The introduction of this tax is expected to lead to an immediate decline in vape product sales and usage. Additionally, there are ramifications we are concerned with, such as increased participation in illicit markets as consumers seek cheaper & lower quality alternatives.

Conclusion & Tips For Our Customers:

With higher prices due to the Tax, we have provided some proactive steps to lessen its impact:

  • Consider purchasing vape products before the tax implementation date to save money.
  • Keep an eye out for promotions and discounts we offer through this adjustment period of the new tax regime.

These adjustments may have a substantial impact on your purchasing decisions and budgeting. We are committed to helping you navigate through these changes while offering guidance on cost-saving strategies.

We appreciate your business and are here to help with any concerns. Don't hesitate to reach out to us via hany@clutchvape.ca 

Thank you for your continued support!

Key Dates & Changes:

  • July 1, 2024: Updated Federal and New Provincial Excise Tax increases take effect, raising the price of vaping products.
  • September 1, 2024: All products must feature the new Excise Stamps. Products without updated Excise Tax Stamps can no longer be legally sold.
  • September 30, 2024: All businesses must sell E-Liquid containing products with Province-specific stamps. Products must only be sold within the designated province.
  • October 1, 2024: RCMP begins enforcement, with severe penalties and criminal charges for non-compliance.