Excise tax hikes ‘pretty damaging’ for vape shops

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This article was published 18/04/2024 (876 days ago), so information in it may no longer be current.

Local vape shops anticipate a drop in sales as taxes jump.

On Tuesday, the federal government announced excise tax increases for tobacco — $4 per cigarette carton — and vape supplies, which will see a 12 per cent tax hike.

“It’s pretty damaging for a lot of us small guys,” said Robert Moose, owner of Glob Mob Headshop on Portage Avenue in Winnipeg. He recalled a customer base loss of 50 to 60 per cent during the last excise tax increase; Canada first implemented one in October 2022.

At the time, some items’ prices increased by $7 to $10, Moose said. He expects former clients may buy unregulated products from overseas to score cheaper deals.

People who are trying to quit smoking might return to cigarettes if they find vapes too expensive, a manager of Winnipeg E-Vape added Wednesday.

The excise tax could add an extra hurdle for breaking cigarette addiction, said Maneesha, who declined to give her last name.

For the Manitoba Lung Association, however, the announced tax increases are “a step in the right direction.”

“As the prices go up, people smoke less, people vape less,” said president Neil Johnston, adding he’d like to see money collected from the excise tax funnelled into smoking prevention and cessation programs.

Banning vape flavours, increasing purchasing age to 21, and implementing a cost-recovery model where manufacturers are charged and the money is returned to cessation/prevention programs would be beneficial next steps, he said.

The higher tobacco and vaping taxes are expected to generate $1.7 billion in revenue. The cigarette price hike began Wednesday; the tax on vaping products will increase in July.

Manitoba’s NDP government has said it plans to add its own excise tax on vaping products in July.

gabrielle.piche@winnipegfreepress.com