It will get more expensive for Canadians who smoke cigarettes and vape, under proposals outlined in the 2021 federal budget to further tax tobacco and vaping products, such as e-cigarettes.
Budget 2021 announces the federal government’s intention to introduce a “new taxation framework” to impose excise duties on vaping products that would start in 2022 if the budget is passed. An excise duty, also knows as a sin tax, is a tax charged on goods such as tobacco products, wine, and beer.
The budget document notes that, in addition to raising revenues, the duty could become an “effective means to help curtail harmful consumption of these products.” The government points to a Health Canada survey showing use of products like e-cigarettes has doubled since 2018 among Canadian high school students.
“Vaping with nicotine poses risks, especially to young people,” the budget document says. “Nicotine is highly addictive, can affect memory and concentration, and is known to alter brain development in teens.”
The new duty would apply to vaping liquids made in Canada or imported, that are intended for use in a vaping device in Canada. The duty applies whether or not the liquids contain nicotine. Cannabis-based vaping products are exempt as they’re already subjected to cannabis excise duties.
The framework would impose a single flat rate duty on every 10 ml of vaping liquid, or fraction thereof, within a container.
Phil Hahn – CTV News – 2021-04-19.
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