New Regulations on E-Cigarette Consumption Tax in Canada

The Canadian Finance Department has released draft regulations on e-cigarette consumption tax, affecting domestic production and imports with specific province taxes. The bill applies to e-cigarette products produced or imported within Canada, with a specific provincial sales tax based on their intended use and point of sale. The designated e-cigarette provinces include Ontario, Quebec, the Northwest Territories, and Nunavut. Untaxed e-cigarette products will also be subject to the provincial sales tax. The legislation includes provisions for a transition period from July 1 to September 30, 2024, and will not apply to certain e-cigarette products until October 1, 2024. The release of this draft regulation has sparked attention from various sectors, particularly the industry and consumer groups related to e-cigarettes. The implementation of this regulation will have a significant impact on the e-cigarette market and consumers.