Budget 2024 – Changes to Excise Duty Rates on Vaping Products Effective July 1, 2024

Excise Duty Notice EDN96

May 2024

Except as otherwise noted, all statutory references in this publication are to the provisions of the Excise Act, 2001. The information in this publication does not replace the law found in the Act and its regulations.

If this information does not completely address your particular situation, you may refer to the Act or relevant regulation, or contact your CRA regional excise office for additional information. The offices are listed at Contact Information – Excise and Specialty Tax Directorate.

Any commentary in this publication should not be taken as a statement by the CRA that the proposed amendments will be enacted in their current form.

General

On April 16, 2024, the Deputy Prime Minister and Minister of Finance tabled Budget 2024 and an accompanying Notice of Ways and Means Motion proposing amendments to the Excise Act, 2001 with respect to vaping products. The proposed legislative amendments are included in Bill C‑69, Budget Implementation Act, 2024, No.1, which was tabled on May 2, 2024. Subject to royal assent, the rates of excise duty on vaping products would increase effective July 1, 2024.

This proposed increase would apply to vaping duty as well as to the additional vaping duty imposed in respect of specified vaping provinces under the coordinated vaping duty system. For more information, refer to Excise Duty Notice EDN95, Coordinated Vaping Duty System.

Rates of excise duty on vaping products

Vaping liquids are measured in millilitres (mL) and vaping solids are measured in grams (g).

The current rates of excise duty in specified and non-specified vaping provinces are:

• $1 per 2 mL or g or fraction thereof for the first 10 mL or g of vaping substance in the vaping device or immediate container
• $1 per 10 mL or g or fraction thereof for amounts over the first 10 mL or g

Effective July 1, 2024, the rates of excise duty in non-specified vaping provinces would be:

• $1.12 per 2 mL or g or fraction thereof for the first 10 mL or g of vaping substance in the vaping device or immediate container
• $1.12 per 10 mL or g or fraction thereof for amounts over the first 10 mL or g

Effective July 1, 2024, the rates of excise duty in specified vaping provinces would be:

• $2.24 per 2 mL or g or fraction thereof for the first 10 mL or g of vaping substance in the vaping device or immediate container ($1.12 vaping duty + $1.12 additional vaping duty)
• $2.24 per 10 mL or g or fraction thereof for amounts over the first 10 mL or g ($1.12 vaping duty + $1.12 additional vaping duty)

For further information on calculating excise duty on vaping products, refer to Excise Duty Notice EDN82, Calculation of Vaping Duty.

Further information