In Part 1 of this Series, we explored CRA’s recent increased taxation and audit activity in Canada’s Vaping Industry. In Part 2 of this Series we explored Health Canada’s imminent ban on flavoured vaping products. These three initiatives have created an unhappy trifecta that may signal major business difficulties for many vaping manufacturers, importers and retailers in 2025, and in our final Report, we raise concerns about the Government’s policy choices.
The Hazy Logic of Canada’s Regulatory Policy
One the one hand, Health Canada’s expected ban on flavoured vapes is focused on protecting vulnerable citizens (youth) and is laudable. Similarly, CRA’s continued levels of high taxation in this industry help support Canada’s massive spending levels, helping reduce the significant debt we are already leaving to future generations. At this level these policies seem to make sense. On another level they also look rather suspect.