Canada: Federal excise tax on e-cigarette products in Yukon will double starting January 1, 2025

Effective January 1, 2025, the federal excise tax on vaping products in Yukon will increase to double the current rate.

Under the Coordinated Vaping Product Tax Agreement, the new federal excise tax rate will be:

$2.24 per two milliliters, or fraction thereof, for the first 10 milliliters of vaping substance in a product; and

$2.24 per 10 milliliters for volumes beyond that.

Yukon will receive 50 percent of the tax revenue collected by the federal government from vaping products sold in the territory.

This new tax rate is a result of the Yukon government joining the federally coordinated framework for vaping product taxation, which was announced in March of this year.

The framework is an effective tool to deter vaping in Yukon and ensures that tax revenues are returned to the territory. The framework focuses on reducing vaping among youth by primarily impacting single-use products, such as vaping pods, rather than reusable open systems that studies show are used more frequently by adults.

The Government of Yukon signed the Coordinated Agreement on the Taxation of Vaping Products 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 will come into effect in four provinces (Alberta, Manitoba, New Brunswick and Prince Edward Island) along with Yukon on January 1, 2025. A total of nine provinces and territories have joined the federal framework.

Since 2018, MIRRPOD have been dedicated to the innovation and manufacturing of high-quality Pod Vape Kits. Over the years, we have established ourselves as a trusted partner for brands worldwide, offering comprehensive OEM and ODM services. Our commitment to excellence has earned us the recognition and long-term collaboration of clients across the globe.  

We pride ourselves on providing end-to-end solutions, covering every stage of the process: from product design to prototyping, sample validation, production, testing, and mass manufacturing. Our integrated approach ensures that every product meets the highest standards of quality and performance, delivering value and satisfaction to our clients.  

At the core of our business is a passion for innovation, a focus on customer needs, and a commitment to building lasting partnerships. Let us help you bring your vision to life.