With the dawn of 2025, Albertans will face new taxes introduced by the provincial government, including measures aimed at decreasing youth vaping and charging electric vehicle owners.
The Alberta government has unveiled two new taxes as part of its 2024-25 budget: the vape tax and the registration fee for electric vehicles (EVs). The vape tax, set to take effect this Wednesday, is aimed at curbing the use of vaping products, particularly among the province's youth. Alarmingly, one-third of Albertans aged 15 to 19 currently vape, prompting the government's decision.
The vape tax will charge $1.12 for the first 10 millilitres (mL) of vape product and another $1.12 for every additional 10 mL used. For example, purchasing 30 mL of vape juice would incur a tax of $5.60 for the first 10 mL and $2.24 for the remaining 20 mL. This tax aligns with the existing federal taxation on vaping products. Local vape entrepreneur Amer Obeidet, co-owner of Central Vape and Smoke, expressed concern over how this tax will affect his business. "Business owners want a break... You don’t see (the government) going after the alcohol industry, the cannabis industry where there’s definitely people underage going to do [that]," Obeidet said.
Professor Michael Chaiton from the University of Toronto, who specializes in public health and tobacco research, provided his insights. He noted the necessity of addressing vaping policy nationwide. “We’re struggling with our vaping policy... what we’ve done is really well at getting e-cigarettes [into the hands of youth]," he stated. Chaiton believes the goal should be to help smokers transition to vaping rather than encouraging youth to engage with these products.
ObeidET is particularly worried about the consequences of making vaping more expensive. He explained the potential regression to cigarette smoking, stating, “A lot of people have quit cigarettes from vaping over the past 10 years, and you’re talking about millions.” Chaiton acknowledged the possibility of increased cigarette use where vape taxes are imposed, but emphasized the importance of pairing vape regulations with higher cigarette taxes to maximize public health benefits.
Alongside the vape tax, electric vehicle owners will face new financial responsibilities starting this year. An annual registration fee of $200 will now apply to those who drive electric vehicles. This decision has met with mixed reactions; some see it as fair because EV drivers do not contribute to fuel taxes, whereas others label it as nothing more than a cash grab.
The exact timeline for implementing this registration fee is still unclear, as inquiries to Edmonton registries yielded little information on its rollout. The new fee is part of Alberta's broader strategy to balance transportation funding.
Another significant change impacting beverage consumers is the newly established electricity "rate of last resort," which commenced recently and replaces the existing default rate for power users without contracts. This new rate is set at about 12 cents per kilowatt-hour until 2027 and aims to protect consumers from price fluctuations seen under the previous plan.
While this new rate appears stable, the Alberta government requires retailers to check with customers if they wish to enroll in competitive rates, which often offer much lower prices. The intent is clear: to provide consumers with options and stabilize market rates.
With these changes on the horizon, Albertans will need to adjust to the new tax climate as the government promotes health initiatives and fair contributions from all vehicle owners. The conversations sparked by these measures signal larger discussions about youth health, public safety, and equitable taxation.