The Alberta government has announced the introduction of two new taxes that will take effect in 2025, as outlined in its 2024-25 budget. These taxes include a vape tax and a registration fee for electric vehicles.
Vape Tax Details and Purpose
The vape tax, which comes into effect on Wednesday, aims to discourage the use of vaping products, particularly among young Albertans. The government cites data showing that one-third of Albertans between the ages of 15 and 19 currently vape.
The tax will be charged at a rate of $1.12 per two millilitres (mL) of vape product for the first 10 mL, and an additional $1.12 per 10 mL for products over 10 mL. For example, a 30 mL vape juice refill will incur a tax of $5.60 for the first 10 mL and $2.24 for the last 20 mL. The Alberta government notes that this tax is consistent with the existing federal tax on vaping products.
Vape Business Owners Express Concerns
Amer Obeidet, co-owner of Central Vape and Smoke with his brother Adhem Obeidet, views the new tax as another hurdle for their vape business to overcome. "Business owners want a break," Obeidet stated, highlighting the challenges faced by the vaping industry in light of the new tax.
As Alberta implements these new taxes in 2025, the impact on both the vaping industry and electric vehicle adoption remains to be seen. The government's efforts to discourage youth vaping through taxation will likely face scrutiny from business owners and consumers alike, while the electric vehicle registration fee may influence the rate at which Albertans switch to more environmentally friendly transportation options.
