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New Vape Tax Puts Public Health at Risk

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Ottawa, ON, March 31, 2025 (GLOBE NEWSWIRE) — Last week, the Saskatchewan government announced it will remove the 6% provincial sales tax (PST) exemption on vaping products, effective June 1, 2025. As the national voice for the vaping industry, the Canadian Vaping Association (CVA) is deeply concerned by this decision, which was made without meaningful consultation with businesses and stakeholders dedicated to harm reduction. 

Vaping products are already subject to excessive taxation, which in Saskatchewan is already taxed at 20%, including additionally a federal excise tax. Unlike combustible cigarettes—a leading cause of preventable death—vaping is a scientifically recognized harm reduction tool for adult smokers. Imposing additional taxes ignores this important distinction and risks pushing adult consumers back to smoking or toward unregulated, dangerous illicit markets. 

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The Consequences of Over-Taxation 

• Increased Smoking Relapse: When vaping becomes unaffordable, many adults return to smoking—a habit responsible for 125 Canadian deaths daily and $11 billion in annual healthcare costs. 

• Growth of Illicit Markets: High taxes drive consumers to illegal sellers who operate outside safety regulations, undermining provincial and federal harm reduction goals. 

• Economic Harm to Small Businesses: Specialty vape retailers, already struggling under heavy taxation, face further strain, risking closures and job losses. 

Youth Vaping Myths vs. Reality 

While some groups justify restrictive policies by exaggerating youth vaping rates, Statistics Canada’s 2025 Canadian Health Survey on Children and Youth shows a significant decline—past 30-day use among youth (12–17) has dropped to 7.2%, down from 13.2% in 2019. Misleading claims often inflate statistics by including legal adults (18+), distorting the true picture. 

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A Call for Evidence-Based Policy 

The CVA urges the Saskatchewan government to: 

1. Pause the 6% PST implementation and engage in urgent consultations with industry experts. 

1. Recognize vaping as harm reduction, not a vice, and adjust taxation accordingly. We urge the Saskatchewan government to consult with Health Canada.  

1. Combat illicit markets through enforcement and higher fines, not punitive taxes that hurt legal businesses. 

“Taxing vaping like cigarettes is a public health failure,” says Sam Tam, CVA President. “If the government is serious about reducing smoking rates, it must work with—not against—the vaping industry to keep adult smokers away from deadly tobacco.” 

The CVA invites policymakers to meet and discuss balanced solutions that protect both public health and small businesses. The time to act is now—before more lives and livelihoods are lost. 

For media inquiries or to schedule a meeting, please contact: 
Sam Tam, CVA Spokesperson
Email: [email protected] 

Sam Tam The Canadian Vaping Association  [email protected] 

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