New Excise Tax for July 1 2024

On October 1, 2022 The Canadian Federal government introduced an excise tax on every e-liquid bottle or pre-filled pod sold within Canada to be excise-duty stamped (similar to the excise stickers found on tobacco and cannabis products).

When the government drafted that regulation, they allowed each province to also do the same and collect excise duty on behalf of each province if they wished.

 Starting July 1st, 2024, the following provinces will also be collecting an excise duty on all  E-Liquid, Disposables & Pre-Filled Pods. This tax is not applied to hardware or coils.

• Ontario
• Quebec
• Northwest Territories
• Nunavut

Starting on January 1st, 2025, the following provinces will also be collecting an excise duty on all  E-Liquid, Disposables & Pre-Filled Pods

• Alberta
• Manitoba
• New Brunswick
• Prince Edward Island
• Yukon

What is the new cost?

In addition to the provincial duty, the 2024 finance budget also introduced a 12% increase in the general duty rate.

The provincial excise duty rate is identical to the federal rate, effectively doubling the excise tax in provinces that have opted in.

• $1.20 per 2mL on the first 10mL of e-liquid (or pod, or disposable) (effectively, $6 on the first 10mL of a bottle)
• $1.20 per 10mL above the first 10mL

This adds $3.36 (Federally) + $3.36 (Provincially) in tax on a 3-pack of 2ml pods, $7.84 (Federally) + $7.84 (Provincially) in tax on a 30mL bottle, $11.20 (Federally) + $11.20 (Provincially) on a 60mL bottle, $17.92 (Federally) + $17.92 (Provincially) on a 120mL bottle.

Bottle Size	Federal Excise Tax Per Bottle	Provincial Excise Tax Per Bottle	Total Excise Tax Per Bottle
Pod 3-pack	+ $3.36	+ $3.36	+ $6.72
30mL	+ $7.84	+ $7.84	+ $15.68
60mL	+ $11.20	+ $11.20	+ $22.40
120mL	+ $17.92	+ $17.92	+ $35.84

When does this increase start?

Manufacturers must add provincial stamps to products as of July 1st, 2024. Retailers have until October 1 2024 to sell off stock that has the Federal only duty stamp.

 Who does it affect?

This will only affect every customer ordering e-liquid within Ontario, Quebec, Northwest Territories, or Nunavut. You will not be charged additional provincial excise duty taxes if you purchase products from  outside these provinces.