tobacco and vape tax

The Federal budget targeted tobacco products with $4 per carton effective at midnight, Monday, April 19, 2021.

In addition, will be vaping taxes implemented by year end should this budget pass.

CTV News did a feature that clearly spells out the increases:

It will get more expensive for Canadians who smoke cigarettes and vape, under proposals outlined in the 2021 federal budget to further tax tobacco and vaping products, such as e-cigarettes.

Budget 2021 announces the federal government’s intention to introduce a “new taxation framework” to impose excise duties on vaping products that would start in 2022 if the budget is passed. An excise duty, also knows as a sin tax, is a tax charged on goods such as tobacco products, wine, and beer.

The budget document notes that, in addition to raising revenues, the duty could become an “effective means to help curtail harmful consumption of these products.” The government points to a Health Canada survey showing use of products like e-cigarettes has doubled since 2018 among Canadian high school students.


… The government is also proposing to increase the tax on tobacco products, by $4 per carton of 200 cigarettes. It’s estimated this tax would boost federal revenues by more than $2.1 billion over five years.

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