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Taxation of e-cigarettes in Canada

Time: 2022-12-11

Views: 424

Canada's Quebec plans new tax on vaping industry next fall

Quebec's plan to tax vaping products has been welcomed by anti-tobacco groups.


The federal government has already introduced a similar tax and it will come into full effect in the new year. The province's excise tax is expected to match that and be applied to product prices next fall.


Nova Scotia, British Columbia, Saskatchewan, Newfoundland and Labrador are all moving in the same direction.


Staff at the Quebec Tobacco Control Coalition (QCTC) are pleased that Quebec joined other provinces in taking this measure, as they reported a significant increase in high school students using nicotine vaping products.


“I think the good news is that this tax is positioned as a public health measure. Against this backdrop, we have 18% of Quebec youth using vaping products, and a third of them use them on an almost daily and weekly basis ,” said QCTC co-director Flory Doucas.


Ducasse said surveys showed a large proportion of young people said they wanted to quit because they realized they were addicted to the products.


"So we're really facing a huge problem, you know you need to curb vaping," Ducasse said.


In Quebec, consumers are expected to spend a total of $2 for 2ml of vaping liquid for under 10ml of the substance.


“So we’re likely to see a 2 to 4 milliliter product that’s sold in most convenience stores in the market, and that adds about $2 to $4 in tax on that pack. So that’s pretty substantial,” Ducasse said.


Experience with tobacco products informed the Coalition's view.


Ducasse said they saw consumption of tobacco products decline among price-sensitive consumers, including underage, adolescents and those from lower socioeconomic backgrounds.


“This is the same principle that we want to apply to vaping products, given their popularity among children and young people who have never smoked,” the campaigner said.


On the bright side, she points out that the federal government has capped the amount of nicotine in products, making them slightly less addictive for young people, or at least giving them a better chance.


Now the QCTC intends to address the issue of e-cigarette flavors, as well as pricing, Doucas said, because another challenge is the aggressive way manufacturers market their products and what she calls price wars between companies.


"I think the industry will adapt, it's always adapting to public measures and public knowledge, especially when it comes to policies aimed at reducing consumption," she said.



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