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New Tax Measures Will Bring Vapour And “Heat-Not-Burn” Products In Line With Tobacco

Released on April 20, 2021

A new tax of 20 per cent on the retail price of all vapour liquids, products and devices will take effect in Saskatchewan on September 1, 2021.  Legislation to implement the new Vapour Products Tax (VPT) was introduced today.

"The 2021-22 Budget included several measures to improve the fair application of Saskatchewan's taxes, including the taxation of vapour products and heat-not-burn tobacco products," Deputy Premier and Finance Minister Donna Harpauer said.  "These measures will help discourage the use of these products by young people and by other non-smokers."

All vendors of vapour products will be required to become licensed by August 31, 2021, with a VPT vendor's licence, in order to report and submit the VPT collected.  Filing of VPT returns will be required for the reporting period beginning September 1, 2021, and forward.

Provincial Sales Tax (PST) at the rate of six per cent will continue to apply to vapour products sold in Saskatchewan through August 31, 2021.  Vapour products sold after this date will no longer be subject to PST and will instead be subject to the 20 per cent VPT.

In addition, effective June 1, 2021, heat-not-burn tobacco sticks will become a separate category under The Tobacco Tax Act and taxed at a rate of 20.5 per cent per stick.  This is approximately 75 per cent of the tax rate on tobacco cigarettes.

For more information about these new tax measures, email or call (toll-free) 1-800-667-6102.


For more information, contact:

Brian Miller
Phone: 306-787-6605

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