What is this?
The 2024 Ontario Finance Budget has introduced a new provincial excise tax that will apply to all products containing a vaping substance. This new tax will come into effect starting October 1st, 2024.
Ontario has opted into a new taxation program that mirrors the federal excise duty rate, effectively doubling the excise duty on e-liquids, pre-filled pods, and disposable devices for Ontario customers. These changes are meant to regulate the cost of vaping products within the province, but unfortunately, it also means that prices will be increasing.
How much is the tax?
The provincial excise tax is identical to the federal excise tax rate, which significantly impacts the cost of vaping products. Here’s a detailed breakdown:
On the First 10mL of E-Liquid (or pod, or disposable)
- $1.12 per 2mL (Federal)
- $1.12 per 2mL (Provincial)
- This amounts to $11.20 total excise duty (Federal + Provincial) on the first 10mL of a bottle.
Above the First 10mL
- $1.12 per 10mL (Federal)
- $1.12 per 10mL (Provincial)
- This amounts to $2.24 total excise duty (Federal + Provincial) for each 10mL above the initial 10mL.
Example for popular e-liquid bottles
30mL Bottle:
- $7.84 (Federal) + $7.84 (Provincial) = $15.68 total excise duty
60mL Bottle:
- $11.20 (Federal) + $11.20 (Provincial) = $22.40 total excise duty
120mL Bottle:
- $17.92 (Federal) + $17.92 (Provincial) = $35.84 total excise duty
Who is the Tax For?
Currently, this provincial excise duty only applies to customers in Ontario, Quebec, North West Territories and Nunavut. Other provinces have not yet adopted this provincial tax, which means that Ontario residents will see higher prices on vaping products compared to other provinces in Canada. If you’re in Ontario, expect prices to reflect the combined federal and provincial duties starting from October 1st, 2024.
For customers outside of Ontario, the regular federal excise duty will continue to apply without any additional provincial excise tax for now.
Is it cheaper to smoke?
No it is still significantly cheaper to vape.
- A pack-a-day smoker spends approximately $18 per pack in Ontario, which totals $126 per week.
- A vaper using a 30mL bottle of e-liquid for the same period spends about $15.68 in excise duty + $20 – $30 for the e-liquid, totaling ~$40 per week.
So, even with the new tax, vaping remains the more affordable option compared to smoking traditional cigarettes.
What products does this affect?
The new provincial excise duty will apply to all vaping products containing a vaping substance. This includes:
- E-liquids
- Pre-filled Pods (STLTH, JUUL and all other pre-filled pods)
- Disposable Devices
Essentially, any product that contains nicotine or any other vaping substance is subject to this tax. Hardware and accessories that do not include e-liquid (e.g., empty tanks, coils, or devices) are not affected by this new excise duty.
What does this mean for me?
If you’re an Ontario resident, you’ll see prices go up on vaping products starting October 1st, 2024. This is the result of a combined federal and provincial excise duty that effectively doubles the cost of these taxes. We recommend stocking up on your favorite e-liquids and pods before the tax comes into effect to take advantage of current pricing.
For more information or to view our product catalog, visit VapeLoft.com.
