In a recent 724-page budget tabled in Parliament which is yet to be approved, Trudeau’s government proposed a single flat rate of $1 per 10 ml of e-liquid or fraction thereof, with the aim of curtailing “harmful consumption” of e-cigarettes.
The new federal excise duty on vaping products is set to go into effect in 2022 on all e-liquids regardless of the level of nicotine they contain. However, it would only apply to e-liquids that are either manufactured in Canada or imported to be used locally.
The tax would be calculated and imposed based on the volume of the smallest immediate container holding the liquid, stated the document, and Cannabis-based vape products would be exempt since they are already subject to excise duties on cannabis.
“The last federal licensee in the supply chain who packaged the vaping product for final retail sale, including vape shops holding an excise licence, as applicable, would be liable to pay the applicable excise duty,” reads the proposal, explaining which entity is responsible for paying the tax.
Diane Caruana – VapingPost – 2021-05-14.