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Provincial Excise Tax:
2025 Updates
There are key changes to the Excise Duties on Vaping Products Regulations, announced by the Canada Revenue Agency (CRA), that have taken effect as of November 6, 2024.
This includes the addition of five new provinces to the coordinated vaping duty system, along with updates to stamping and transitional rules.
Here’s what you need to know:
New Provinces Affected
The following provinces are included in the new vaping duty system, effective November 6, 2024:
- New Brunswick
- Manitoba
- Prince Edward Island
- Alberta
- Yukon
Key Dates:
Transitional Period: January 1, 2025 – March 31, 2025
During this 90-day transitional period, vaping products entering the duty-paid market in these new provinces may be sold with either a Federal Excise Stamp or a Provincial Excise Stamp. This applies to products already in the market before January 2025 that have Federal Excise Stamps.
Effective April 1, 2025
From this date forward, all vaping products sold in the affected provinces must carry a province-specific excise stamp.
Impact on Costs:
The excise tax rates will vary depending on the product’s mL bracket. Below is a breakdown of the combined Federal and Provincial Excise Taxes for each tier:
| Tier | Federal Tax | Provincial Tax | Total Tax |
| 0.1mL to 2mL | $1.12 | $1.12 | $2.24 |
| 2.1mL to 4mL | $2.24 | $2.24 | $4.48 |
| 4.1mL to 6mL | $3.36 | $3.36 | $6.72 |
| 6.1mL to 8mL | $4.48 | $4.48 | $8.96 |
| 8.1mL to 10mL | $5.60 | $5.60 | $11.20 |
| 10.1mL to 20mL | $6.72 | $6.72 | $13.44 |
| 20.1mL to 30mL | $7.84 | $7.84 | $15.68 |
| 30.1mL to 40mL | $8.96 | $8.96 | $17.92 |
| 40.1mL to 50mL | $10.08 | $10.08 | $20.16 |
| 50.1mL to 60mL | $11.20 | $11.20 | $22.40 |
Online Sales & Brick-and-Mortar Adjustments:
Online Sales
Retailers operating in or shipping to these provinces will need to ensure compliance with the new provincial-specific excise stamps.
Brick-and-Mortar Stores
Retailers in the affected provinces must transition their inventory to meet stamping requirements by the deadline.
Timelines & PSI Preparedness:
Starting in January 2025, we will enhance our communications to help retailers throughout this transition and ensure a smooth shift for all provinces. Retailers will have until March 31, 2025, to transition their inventory, and additional website updates will be launching in January to provide further support.
Support and Next Steps
We understand that changes like these can be challenging, and Pacific Smoke International (PSI) is committed to supporting you through this transition. Here’s how we can assist:
Ongoing Updates
Look out for updates from PSI on website adjustments, product pricing changes, and compliance support. We will provide more details in the coming months.
Manage Inventory
Retailers are encouraged to manage inventory levels and deplete all federally stamped products before March 31, 2025. Our sales team is here to assist with this 90-day transition period.
Training and Resources
Prepare your staff and customers for these changes to ensure smooth operations.
Contact Us
If you have questions or concerns, reach out to your account manager, or email us at service@pacificsmoke.com. For further guidance, you can also contact the CRA Vaping Products Department at lpvapingg@cra-arc.gc.ca.
We appreciate your continued partnership and cooperation as we navigate these regulatory changes together. Stay tuned for more updates and thank you for your support!