Canadian Excise Duty (Vape Tax) Coming January 1st

December 30, 2022

Background of Vaping Excise Tax

In June of 2022, a vaping excise tax was approved by our Federal government. This tax goes into effect on October 1, 2022, and applies to any manufactured vaping products. This tax will be added to all vaping products containing e-liquid, including pods, disposables, and all e-liquid bottles for sale across Canada. As described by the Federal government: “The excise duty applies to vaping substances that are manufactured in Canada or imported and that are intended for use in a vaping device in Canada”.

New Pricing in Canada

From Mid of November, the SRP of 2-packed will be about CAD$15.99, single packed will be about CAD$7.99.

Size	Original Price	Requried Tax	New Price
2-Packed *2ml RELX Pod Pro	13.99	2	15.99
Single pakced RELX Pod Pro	6.99	1	7.99
RELX Stick	14.99	2	16.99
RELX Bar	12.99	0	/

When will the price increase?

We expect that sell the RELX Pod Pro at the new price with the excise stamps from 2023.01.01.

Will the device price increase?

The price of device will not increase.

What is the tax stamps?

The stamps are identical to the tax stamps you currently see in Canada on tobacco, e-cig vaping and e-liquid products. Here is an example of an excise stamp you will begin to see on our vaping products containing e-liquid.

Why was the pod price increased to CAD$15.99/CAD$7.99?

The price increase is due to the increase in excise tax for vapor products under Excise Tax Information being approved by Federal government. You can refer here to know more about excise tax.

https://budget.gc.ca/2022/report-rapport/tm-mf-en.html#a5_3

Despite the additional work and expense of ordering, shipping, protecting, inventorying, and applying these vape excise stamps, RELX is committed to maintaining our product prices as they were prior to the tax. The new vaping tax accounts for the entire increase in our product pricing. We are not raising our prices to cover our increased production and manufacturing costs.