Vape pricing is one dimension for positioning vape products within the market. As we’ve discussed, vape features and total mLs are contributing factors manufacturers select when placing their brand in the market.
In most situations, vaping devices are measured by and priced by the total amount of milliliters it contains. Disposable vapes, closed pods, and bottle products are filled with e-liquid. All devices that contain e-liquid must display the total milliliters within the product on its label.
In this section, we’ll discuss how pricing operates as a function of external tax policy. We’ll discuss what the Excise Tax is and how the tax breaks down by milliliters.
What is the Excise Tax?
As of January 1, 2023, The Canadian Government has implemented an Excise Tax on vaping products containing e-liquid. Closed-pod systems, disposable vapes, and e-liquid bottle products will now be taxed proportionately to the amount of vaping substance within the device.
This tax only affects vaping products containing e-substance, which can be in liquid form (mL) or solid form (mg), so this change does not affect vaping hardware, accessories, and paraphernalia.
Learn more about the Excise Tax:
How is e-substance taxed: in Liquid Form
For the first 10 milliliters (mLs), the tax rate is $1 per 2mL. For each additional 10mL, $1 is applied.
0.1mL to 2mL = $1 of excise tax
2mL to 4mL = $2 of excise tax
4mL to 6 mL = $3 of excise tax
6mL to 8 mL = $4 of excise tax
8mL to 10 mL = $5 of excise tax
Beyond 10mL, the tax is applied at every 10mL interval. This means that 11mL to 20mL = $6 of excise tax and 21mL to 30mL = $7 of excise tax, etc.
Learn more about Excise Tax pricing: