Yukon Will Double Federal Excise Tax on January 1, 2025

New Taxation Agreement Aims to Discourage Vaping and Reduce Youth Vaping Rates

The Government of Yukon has joined the federally coordinated vaping product taxation framework, resulting in a doubling of the federal excise tax on vaping products in the territory. The new taxation agreement, signed on May 22, 2024, will take effect on January 1, 2025.

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% of the taxation revenue collected by the federal government from vaping products sold in the territory. By signing the agreement, the Government of Yukon has committed to not imposing its own tax on these products.

Read more: Canada Vape Tax Increase: Higher Vaping Prices Expected

Focus on Reducing Youth Vaping Rates

The framework serves as an effective tool for discouraging vaping in the Yukon and ensures that revenue collected from the tax comes back to the territory. It primarily targets single-use products, such as vaping pods, which studies show are more often used by youth. In contrast, reusable open systems, more commonly used by adults, are less impacted by the tax increase.

Quick Facts

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 Canada Revenue Agency administers the tax on vaping products.

The Government of Yukon’s decision to join the Coordinated Vaping Product Taxation Agreement demonstrates its commitment to discouraging vaping and reducing youth vaping rates in the territory. By working with the federal government and other provinces and territories, the Yukon aims to create a healthier environment for its residents.

Gov Press Release:
https://yukon.ca/en/news/new-taxation-agreement-vaping-products-take-effect-january-1-2025

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Matthew Ma

Marketing at Ecigator

With over a decade of experience in the e-cigarette industry, Matthew Ma is a seasoned expert in both the manufacturing and usage aspects of vaping products. His extensive background has provided him with a deep understanding of the intricacies and evolving dynamics of e-cigarettes.