Statement from Minister of Finance and Minister of Health and Social Services regarding the Yukon’s intention to join the federal coordinated vaping products taxation framework

Minister of Finance Sandy Silver and Minister of Health and Social Services Tracy-Anne McPhee issued the following statement:

“The Government of Yukon is taking action to address an increase in vaping and help reduce vaping-associated lung illnesses by tabling a motion this fall sitting of the Yukon Legislative Assembly asking members to support the Yukon in joining the proposed coordinated vaping products taxation framework from the Government of Canada. This motion signals the Yukon government’s intention to bring forward legislation this coming spring supporting this framework from the federal government.

“The framework will allow provinces and territories to receive 50 per cent of taxation revenue collected by the federal government on vaping products. In return, the Yukon will not add its own tax to these products. Under current timelines and if legislation is passed, the framework will be implemented in 2024.  

“It is important that vaping products in the Yukon are taxed at levels comparable to those in other provinces and territories. The federal tax is expected to reduce widespread consumption among youth, prevent nicotine addiction and help reduce incidences of vaping-related illness, and will apply to vaping substances. The tax will not be tied to whether or not the substance contains nicotine and will not apply to vaping devices or substances already subject to the cannabis excise duty regime, or to substances someone produced at home for their own personal use.

“Joining the framework will effectively increase the tax on vaping products while taking action to help reduce vaping-related illness and ensuring the collected revenue comes back to Yukoners. The federal framework is designed in part to reduce vaping among youth and is comparable with what has been done in other jurisdictions to address this issue.

“We call on members to support this motion so we can move forward with protecting youth from the harms of vaping and joining a practical taxation regime for these products.”