Federal Excise Tax Increase

EXCISE TAX INCREASE JULY 1ST

 

On May 8th 2024, the Federal Government confirmed that the Provincial Excise Tax harmonization has received Royal Assent and will be taking effect as soon as July 1st 2024. This change applies to the following provinces/territories: Ontario, Quebec, Nunavut, and the Northwest Territories.

Vape retailers will be able to sell through inventory that has only the Federal Excise Tax stamp until September 30, 2024. However, as of July 1, 2024 all products manufactured and intended for sale in the above provinces/territories will be required to have a province/territory specific excise stamp (HARMONIZED EXCISE) applied at the time of final packaging.

This will effectively double the excise tax on all consumable products. Also, beginning July 1st 2024, the Federal budget announced a 12% increase on the current as well as pending excise tax. The taxes and increases will be combined at the point of sale and a few examples can be found in the table below.

Some examples of the current rate, the Federal increase and Harmonized excise duty rates on vapin products are outlines in Schedule 8 of the Excise Act, 2001 and be as follows:

Tiers

Federal Tax

(Current)

Federal Tax
12% Tax Increase
(July 1st, 2024)

Provincial Tax

(ON, QC, NU, NWT)

Including 12% Tax Increase

TOTAL Fed. + Prov. Tax

(July 1st, 2024)

0.1mL to 2mL

$1

$1.12

$1.12

$2.24

2.1mL to 4mL

$2

$2.24

$2.24

$4.48

4.1mL to 6mL

$3

$3.36

$3.36

$6.72

6.1mL to 8mL

$4

$4.48

$4.48

$8.96

8.1mL to 10mL

$5

$5.60

$5.60

$11.20

10.1mL to 20mL

$6

$6.72

$6.72

$13.44

20.1mL to 30mL

$7

$7.84

$7.84

$15.68

30.1mL to 40mL

$8

$8.96

$8.96

$17.92

40.1mL to 50mL

$9

$10.08

$10.08

$20.16

50.1mL to 60mL

$10

$11.20

$11.20

$22.40

 

 Beginning July 1,2024 TCV will only be able to ship harmonized excise products within Ontario. We are truly sorry to lose so many of our loyal cross country customers, but we are unable carry duplicate products for the various excise stamps across the provinces/territories. We appreciate your understanding.