British Columbia Will Increase PST Rate on Vapour Products and Tobacco Tax Rates

The government of British Columbia has issued Notice 2019-005, “Notice to Sellers of Vapour Products PST Rate Increase to 20%” to confirm that, effective January 1, 2020, the province will increase the PST rate from 7% to 20% on retail sales and leases of vapour products. This change in legislation is part of several measures introduced to prevent youths from vaping. The notice also specifies that the PST amount will be included in the consideration for the purposes of calculating the GST.

In addition, tobacco tax rates will increase by 2 cents to 29.5 cents per cigarette and to 39.5 cents per gram for all tobacco other than cigars and cigarettes on January 1, 2020. For more information, see the province’s dedicated Tobacco Tax website.