Dried cannabis vaporizers face 20% tax in British Columbia

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(Please see an important update to this story here.)

British Columbia’s beefed up provincial tax will apply to dried cannabis vaporizers in addition to liquid marijuana vaping products.

Newly proposed legislation would nearly triple the provincial sales tax (PST) on those products to 20%.

The Ministry of Finance confirmed to Marijuana Business Daily that the tax would apply to dried cannabis vaporizers if the legislation is ultimately approved. It previously had not been completely clear whether the tax would apply to dried cannabis vaporizers.

The ministry said other adult-use cannabis products sold through regulated channels, including dried cannabis and extracts, will remain at the 7% PST rate.

Under the legislation, which is aimed at the broader vaping market, “e-substances” include any solid, liquid or gas designed for use in a vaping device.

The tax has faced heavy criticism from within legal business circles for potentially making regulated cannabis products less competitive against those sold in the dominant unregulated market.

Industry group Cannabis Council of Canada said the measure would only serve to strengthen the illicit market.

“We strongly urge the B.C. government to reconsider their PST rate increase,” Cannabis Council Chair Megan McCrae said.

The new rate takes effect Jan. 1, 2020, pending legislative approval and a public comment period.

Edibles, extracts and topical cannabis products will be slowly rolled out starting in mid-December, with wider distribution taking place in 2020.

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

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3 comments on “Dried cannabis vaporizers face 20% tax in British Columbia
  1. VapeFully on

    Sure, why not? Let’s tax everything including air 🙂 20% is a bit rough in my opinion… But yeah, why not to go strong right away 😉

  2. Ian on

    20% tax is totally taking the piss. If you want the money that bad, just own all the outlets. Stop the tax and take some ownership. Or people will just buy online to avoid the tax. These tax happy politicians need to be ended.

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