In its budget statement, the federal government announced that it would introduce a special excise levy on vaping products in 2022. At the present time no such levy is imposed, even though several provincial governments have introduced levies on each millilitre sold (e.g. Nova Scotia) or special sales taxes (e.g. British Columbia).
Tobacco and nicotine are viewed by society as sin goods. We lump them loosely with alcohol, cannabis, gambling and so forth. We call them sin goods because they can cause damage to our health if consumed to excess and sometimes if consumed just in small amounts.
Vaping products form the largest component of what we now call alternative nicotine delivery systems (AND systems). Other AND systems come in the form of tobacco- and nicotine-based wet snuff (small pouches that deliver nicotine when the pouch is placed in the mouth) and heated tobacco products (HTP). An HTP is a small tobacco “stick” that is heated rather than burned when placed in a special battery-driven device. Both delivery systems are already subject to a federal excise levy. So, it is natural that we get around to taxing vaping liquid.
Ian Irvine – Globe and Mail – 2021-05-09.
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