Effective October 1st, 2022, Health Canada is implementing a new Excise Duty on all vape substances that are either manufactured or imported into Canada.
What does this mean for consumers?
Between Oct 1, 2022 and Jan 1, 2023 retailers that still have stock of non-stamped products produced prior to Oct 1st will sell products at pre-duty prices. All products that are produced on or after Oct 1st must be sold with the new duty included. This means that you can purchase your eliquid products from retailers until their stock of pre-duty products runs out up until Jan 1, 2023.
What does this mean for retailers?
Since the new duty is applied to products at the time of manufacturing, it will be included in the cost of eliquid products by the manufacture. While this does mean the price of eliquid products will increase, there will be no additional tax to be collected on wholesale and retail purchases above and beyond the current GST/PST/HST. *Note: Excise duty on eliquid products imported into Canada will be the resposnsibility of the importer as per the Customs Act.
How long do retailers have to sell their current stock?
All new eliquid products manufactured from October 1st, 2022 and beyond will be subject to this new excise duty. Health Canada is giving retailers until Jan 1st, 2023 to sell any eliquid products manufactured prior to Oct 1st, 2022.
To help simplify things, we have created this example chart below so you can better understand what the new pricing structure will look like once the excise duty is implemented.
Size Format | Excise Duty Amount | Current Price (Example) | New Price (Example) |
3-Pack of Pods |
$3/Pack |
$15/Pack |
$18/Pack |
Disposable ~ 3000 Puffs |
$4 |
$22/Device |
$26/Device |
30ml Bottle ~ Salt Nic |
$7 |
$20/Bottle |
$27/Bottle |
60ml Bottle |
$10 |
$28/Bottle |
$38/Bottle |
100ml Bottle |
$14 |
$35/Bottle |
$49/Bottle |
For further information on the new excise duty, please visit the Government of Canada's website below.