CANADA, June 6 - Minister of Finance Jill Burridge and Minister of Health and Wellness Mark McLane issued the following statement:

“The Government of Prince Edward Island is taking action to discourage vaping by signing a Coordinated Vaping Products Taxation Agreement with the Government of Canada.

In May 2022, legislation was introduced to signal the province’s intention to join the federal coordinated vaping taxation framework to address an increase in vaping and help reduce vaping-associated lung illnesses.

Prince Edward Island’s provincial duty will match the rates set by the Government of Canada. The federal tax rate announced for the coming year will be $1.12 per two millilitres, or a fraction thereof, for the first 10 millilitres of vaping substance in a product and $1.12 per 10 millilitres for volumes beyond that. Therefore, on PEI it will be a combined tax rate of $2.24 per two millilitres for the first 10 millilitres of vaping substance in a product and $2.24 per 10 millilitres for volumes beyond that. 

The agreement will be implemented January 1, 2025, and will apply to vaping substances. The tax will not be tied to whether the substance contains nicotine and will not apply to vaping devices or substances already subject to the cannabis excise duty regime.

The framework is designed in part to reduce vaping among youth and is comparable with what has been done in other jurisdictions to address this issue.

Signing this agreement will help reduce vaping-related illnesses and ensure the collected revenue comes back to Islanders.”

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