An additional vaping tax is coming for products sold in Ontario, the province says, as it plans to take the federal government up on an offer to charge an additional excise duty.
The province released its fall economic statement Thursday and included in it are plans to enter into a vaping tax agreement with the federal government.
The province said taxation is a “proven and well-established approach to deterring the consumption of products that pose health risks.”
Public health experts, the World Health Organization and the Canadian Cancer Society “have stated that taxation is a critical public policy tool to reduce vaping, especially among young people, and helps manage the associated health risks,” the province said.
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Last year, the federal government implemented a federal vaping tax and subsequently invited provinces and territories to participate.
“Ontario is responding to this invitation to enable the federal government to levy an additional excise duty on vaping products intended for sale in Ontario at the same rate as the existing federal excise duty,” the province said.
The province will then receive the funds from the additional tax.
The move aligns with policies in most other provinces and territories, the province noted.
“British Columbia, Saskatchewan, Newfoundland and Labrador, and Nova Scotia have already instituted a provincial tax on vaping products, while several other provinces and territories have indicated interest in entering into agreements with the federal government,” it said.
The province noted that research indicates youth vaping can lead to smoking, with research in the Canadian Medical Association Journal stating that for every six non-smokers who vape, one will begin to smoke cigarettes.
The Ford government plans to release additional information on the implementation of the new vaping tax in the coming months.
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