Disclaimer: This is intended to provide information respecting the coordinated vaping duty in the Province of New Brunswick under the Excise Act, 2001. This should not be regarded as a replacement of the laws, regulations, or administrative documents to which it refers.
What is the Federal Vaping Duty?
A federal excise duty on vaping products was introduced beginning on October 1, 2022.
Effective July 1, 2024, the federal excise duty was increased to $1.12 per 2 mL of liquid vaping substance (or 2 g of solid vaping substance), or fraction thereof, for the first 10 mL or 10 g of vaping substance, and $1.12 per 10 mL (or 10 g), or fraction thereof, for additional amounts beyond the first 10 mL or 10 g. This was announced as part of the 2024 federal budget.
What is the Coordinated Vaping Duty?
Federal legislation allows for a coordinated excise duty on vaping substances in provinces and territories that wish to participate. The excise duty rate is set by the federal government.
This coordinated excise duty is accomplished by way of a bilateral agreement between the Government of Canada and each participating province or territory, which ensures a level of consistency in the tax treatment of vaping products across the country.
In its 2024-2025 budget the Government of New Brunswick announced its intention to enter a coordinated vaping product taxation agreement with the Government of Canada, with an effective date of January 1, 2025. This agreement was signed by both parties in May 2024.
Tax Rate
The additional vaping duty rate in respect of a specified vaping province or territory is equal to the federal excise duty rate.
Under the coordinated agreement for participating provinces and territories, including New Brunswick, vaping products will be subject to a combined duty rate of:
- $2.24 per 2 mL of liquid vaping substance (or 2 g of solid vaping substance), or fraction thereof, for the first 10 mL or 10 g of vaping substance; and
- $2.24 per 10 mL or 10 g, or fraction thereof, for amounts beyond the first 10 mL or 10 g of vaping substance.
Administration
The Canada Revenue Agency (CRA) administers the Excise Act, 2001 and provisions relating to the imposition of excise duties on vaping products, including in New Brunswick.
Questions with regard to the administration of the vaping duty should be directed to the CRA at:
- 1-866-330-3304 (English)
- 1-866-330-3304 (français)