Starting on January 1, 2025, the federal excise tax on vaping products in the Yukon will increase to twice the current rate.
Under the Coordinated Vaping Product Taxation Agreement, the new federal tax rate will be:
- $2.24 per two millilitres, or a fraction thereof, for the first 10 millilitres of vaping substance in a product; and
- $2.24 per 10 millilitres for volumes beyond that.
The Yukon will receive 50 per cent of the taxation revenue collected by the federal government from vaping products sold in the territory.
This new rate is the result of the Government of Yukon joining the federally coordinated vaping product taxation framework, as announced in March of this year.
The framework is an effective tool for discouraging vaping in the Yukon and makes sure that revenue collected from the tax comes back to the territory. The framework puts a focus on reducing youth vaping rates by mainly impacting single-use products, like vaping pods, rather than reusable open systems that studies show are more often used by adults.
- The Government of Yukon signed the Coordinated Vaping Product Taxation Agreement with the Government of Canada on May 22, 2024.
- By signing the agreement, the Government of Yukon has committed to not imposing its own tax on these products.
- The increased tax on vaping products takes effect in four provinces (Alberta, Manitoba, New Brunswick and Prince Edward Island) along with the Yukon on January 1, 2025. A total of nine provinces and territories have joined the federal framework.
- The tax on vaping products is administered by the Canada Revenue Agency.source:https://yukon.ca/en/news/new-taxation-agreement-vaping-products-take-effect-january-1-2025
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