Recently, Finance Canada released draft regulations regarding the excise tax on e-cigarette products. According to the draft, e-cigarette products will be subject to new tax regulations. Here are the key elements of the draft:
1. The bill will apply to e-cigarette products manufactured or imported into Canada.
2. E-cigarette products manufactured or imported into Canada will be subject to excise tax in specific provinces based on their use and where they are sold.
3. The designated e-cigarette provinces include Ontario, Quebec, the Northwest Territories, and the Territory of Nunavut.
4. Unstamped e-cigarette products will also be subject to excise tax when they are sold in the designated e-cigarette provinces will also be subject to an excise tax when they are sold.5. The legislation also includes transitional provisions that will be in effect from July 1, 2024 to September 30, 2024.6.
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