Taxation of Vaping Products

Budget 2022 introduced a new excise duty on vaping products that went into effect on October 1, 2022. The new excise duty rate is of $1.00 per 2 millilitres (mL), or fraction thereof, for containers with less than 10 mL of vaping liquid. For containers containing more than 10 mL, the rate is $5.00 for the first 10 mL and $1.00 for every additional 10 mL, or fraction thereof.

The PBO estimates that the introduction of the excise duty on vaping products will raise $2.4 billion over 5 years.