Quebec plans to rework its tax rate for vaping products to complement a new federal tax framework that went into effect in October. Finance Minister Eric Girard made the announcement at the beginning of December.
Critics say the measure would increase the price of vaping products by up to 80%.
The federal excise tax boost was announced in June 2022. Consumers may have started noticing the change after October 1.
The new federal excise tax rate for vaping products varies according to container size. Under the new framework, containers of less than 10 ml will see a tax of $1 per 2 ml of vaping liquid. Additional amounts between 0 ml and 2 ml will also be charged $1. So, for example, a hypothetical container in this category with 2.5 ml of liquid will have a federal excise tax of $3 ($1 for the first 2 ml plus $1 for the additional 0.5 ml).
The tax is greater for containers larger than 10 ml: $5 for the first 10 ml of liquid and $1 for each additional 10 ml or amount between 0 ml and 10 ml. So a hypothetical cartridge with 25 ml of liquid would be taxed $7 ($5 for the first 10 ml, plus $1 for the second 10 ml, plus $1 for the additional 5 ml).
Through December 31, 2022, stamps will start to appear on vaping products on which the new excise tax rate has been applied. Beginning January 1, 2023, retailers will only be allowed to sell products with the appropriate stamps.
At the time of the announcement of the new excise tax framework, the federal government invited the provinces to adopt an identical tax rate for vaping products.
It’s this tax that Girard announced Quebec would pursue, arguing that it would serve as a deterrent for youth considering vape use.
The Coalition des droits des vapoteurs du Québec (CDVQ) says the tax would mean vape product prices would increase by between 40% and 80%. Quebec anticipates the measure will generate an additional $40 million in annual revenue at the provincial level.
As Narcity Québec reports, the CDVQ argues that the measure will do little to deter minors and instead burden people trying to transition away from traditional smoking.
“The law already prohibits the sale of vaping products to youth,” CDVQ spokesperson Valérie Gallant said in a December 19 statement. “Instead of depriving tens of thousands of Quebecers who use vaping as a way to quit smoking, it should firmly enforce the existing laws.”
Thomas MacDonald – MTL Blog – 2022-12-20.
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