NEWS BRIEF

Alberta to introduce tax on cannabis vape products

Alberta is set to join British Columbia in slapping a new tax on vaping liquids and devices, including adult-use cannabis.

Last month, British Columbia imposed a 20% sales tax on liquid cannabis vaping products. Vaporizers used for dry cannabis were exempted.

Details of Alberta’s tax will not be know until spring.

“The intent of the tax is to apply to all vaping liquids – including cannabis liquids – and all vaping devices,” Charlotte Taillon, press secretary for the Office of the Associate Minister, Red Tape Reduction, told Marijuana Business Daily in an email.

Taillon would not say whether the tax will apply to vaporizers used for dry cannabis.

“Further details on how the tax will apply to specific products will be available when the legislation is introduced in spring 2020 and when subsequent regulations are brought forward,” she said.

Vape products saw a limited roll-out in most provinces in January, but Alberta delayed their release to complete a review of its smoking law.

Cannabis retailers in Alberta recently started selling the products.

Industry groups have been critical of new taxes on regulated cannabis products, saying they will motivate consumers to continue shopping in illicit channels.

“Dramatically increasing taxes on vape products will allow the black market to continue to flourish with its low prices and decrease options for regulated and reliable products from licensed producers,” the Cannabis Council of Canada, an industry body representing federally regulated marijuana producers, said at the time.

Matt Lamers is Marijuana Business Daily’s international editor, based near Toronto. He can be reached at [email protected].

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