On May 14th, 2024, the Canada Revenue Agency announced a 12% hike in the federal excise tax on all vaping products effective from July 1st, 2024. This increase will apply to all products marked with the Excise Stamp, including vape juices, disposables, and pre-filled pods.
Current and Future Tax Rates::
- 10mL Disposable Vape: Currently taxed at $5, will be $5.60 from July 1st.
- 20mL Disposable Vape: Currently taxed at $6, will be $6.72 from July 1st.
The full breakdown of the tax increase is as follows:
| Volume | Federal Tax Current | Federal Tax Increase |
| 0.X - 2 mL | $1.00 | $1.12 |
| 2.X - 3.9 mL | $2.00 | $2.24 |
| 4.X - 5.9 mL | $3.00 | $3.36 |
| 6.X - 7.9 mL | $4.00 | $4.48 |
| 8.X - 9.9 mL | $5.00 | $5.60 |
| 10.X - 19.9 mL | $6.00 | $6.72 |
| 20.X - 30 mL | $7.00 | $8.96 |
| 60 mL | $10.00 | $12.32 |
| 120 mL | $16 | $19.04 |
| 500 mL | $54 | $60.48 |
Impact on Consumers:
Consumers can expect a slight increase in the prices of vaping products, including disposable vapes, e-liquids, and pre-filled pods. Price hikes will likely range from $1 to $3 on popular products.
Comparison with Smoking:
Despite the tax increase, vaping remains significantly cheaper than smoking. A pack-a-day smoker spends approximately $126 on cigarettes weekly, compared to about $40 on e-liquids for the same period.
