Another Canadian province taxes vapor products

Electronic cigarettes and other vapor products sold in Canada do not fall within the scope of national tobacco tax legislation. That hasn’t prevented provincial tax authorities from introducing their own levies on vapor products sold within their jurisdiction.

Newfoundland and Labrador introduces new tax

Effective 1 January 2021, a Vapour Products Tax or VPT will be introduced on the retail sale of vapor products sold within the Province of Newfoundland and Labrador. A tax at the rate of 20% of the purchase price will be collected under the Revenue Administration Act.

The Act also requires a person who brings a vapor product into the province as a consumer immediately to report and pay the tax that would have been payable had the vapor product been acquired at a retail sale in the province.

British Columbia increases PST

With the introduction of the Vapor Products Tax Newfoundland and Labrador joins British Columbia in singling out vapor products for special tax treatment. On 1 January 2020 British Columbia increased its Provincial Sales Tax rate on vapor products from 7% to 20% of the retail price.

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