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You are at:Home»Vaping»Excise Taxes, Flavour Bans and Black Markets: Is Canada Repeating Australia’s Mistakes?
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Excise Taxes, Flavour Bans and Black Markets: Is Canada Repeating Australia’s Mistakes?

adminBy adminMay 13, 2026No Comments6 Mins Read
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Canada’s vape policy is out of balance. What started as a health initiative aimed at cutting down on youth vaping is now (as is almost always the case) pushing people toward illegal markets, making it harder for smokers on their quitting journey to find safer nicotine options, hence in many cases undoing the progress made in quitting smoking.

Canada’s war on vaping

In line with patterns witnessed elsewhere, many debates have been centered around flavour bans and harsh tax hikes on vaping products. The idea was to deter cigarette smoking, but now it’s hitting reduced-risk products pretty hard, driving prices up and shrinking the legal market.

Sam Tam, President of the Canadian Vaping Association, recently shared his concerns on RegWatch. He pointed out how these growing restrictions are leading to vape shops closing their doors while an underground market thrives. He even mentioned an increase in criminal activity linked to this black market, including arson attacks on vape stores. Critics have noted that this scenario looks a lot like what’s happened elsewhere, with Australia being a prime example; strict policies didn’t actually lower demand, they just pushed consumers into unregulated options.

A report from the Consumer Choice Center has taken aim at Canada’s public health agencies for lobbying against harm reduction methods that genuinely help people quit smoking. They call it “circular lobbying,” in which public funds support charities that then pressure governments to adopt tougher vaping regulations. Organizations like the Canadian Cancer Society and the Ontario Lung Association are receiving millions in funding while pushing for flavour bans and tougher access controls on nicotine alternatives.

Harm Reduction Under Fire

Harm reduction advocates highlight that these stances clash with scientific evidence. Public Health England found that vaping is about 95% less harmful than smoking, and reviews have shown that vaping products work better for quitting than traditional nicotine replacements. The UK has, in fact, embraced vaping as part of its tobacco control strategy, encouraging smokers who struggle to quit using other methods to switch to lower-risk alternatives, and unlike countries that adopted opposite strategies, it obtained extremely positive results.

Ironically, the Canadian government actually acknowledges that switching from cigarettes to vaping can cut down on harmful substances. Reports indicate that in 2024, about one in five Canadians who kicked the smoking habit did so by using vaping products. Despite this, major health organizations are still pushing hard for tough restrictions on factors like flavours.

Do we actually need flavours?

As a matter of fact, the whole flavour debate remains quite heated. On one hand, critics fear that fruit and candy flavours are unnecessary and are just created to entice kids to try vaping. While tobacco harm reduction experts (supported by real-world data) believe those same flavours can really help adult smokers make the switch from cigarettes. In line with this, multiple studies have shown that actually adults using flavoured vapes have a better chance of quitting than those who stick with tobacco-flavoured ones.
Several Canadian provinces, like Quebec and Nova Scotia, have already banned certain flavours. Research from the University of Waterloo suggested that youth vaping rates dropped in areas with flavour restrictions, and there was no significant increase in youth smoking rates afterward.

David Hammond, who led this study, suggested that while flavours seem crucial for youth experimentation, they aren’t as important for adults trying to quit smoking. He proposed keeping access to tobacco and mint products while removing dessert-like flavours could lessen youth appeal without taking away harm reduction options for grown-ups.

Similarly, Michael Chaiton from the Centre for Addiction and Mental Health said that flavour bans helped decrease youth vaping without pushing them back into smoking. But both researchers did note that Canada’s mixed bag of provincial rules makes enforcement tricky since many consumers can still get flavoured products online or from nearby provinces.

However, many other studies have found that flavours are actually crucial in helping adults make the switch from smoking to vaping. Peer-reviewed papers by renowned experts in the field, such as cardiologist Dr. Konstantinos Farsalinos, have found that fruit flavours, with their pleasant smell and taste, entice smokers to switch from foul-smelling cigarettes.

Prohibition has never worked

The Canadian Health Survey for Children and Youth indicated that youth vaping has dropped significantly, from 13.2% in 2019 to 7.2% in 2023.

Moreover, it is well established that prohibition-style laws do little to curb use and only boost illegal trade. Data have consistently shown that bans push consumers towards unregulated sellers, compromising safety and cutting tax revenues. We’ve seen similar patterns all over the globe. Strict vape restrictions have always led to a rise in black markets and the circulation of illegal products.

Meanwhile, the federal government of Canada seems doubtful on how to move forward. Although plans were made back in 2021 for nationwide flavour restrictions, action keeps stalling. Health Minister Marjorie Michel has said she’s open to the restrictions but hasn’t set any timelines yet.

This hesitance shows a likely understanding of the trade-offs involved. Youth vaping is definitely a concern, but adult smoking continues taking a toll—killing tens of thousands every year in Canada alone. The debate has also revealed major divides over how youth vaping trends are viewed. Some groups still insist there’s an escalating crisis among young vapers; however, the Canadian Health Survey for Children and Youth indicated youth vaping has dropped significantly, from 13.2% in 2019 down to 7.2% in 2023.

Going against science

Sadly, the local restrictions don’t stop with vaping; Canada has also restricted flavoured nicotine pouches exclusively to pharmacies—making it harder for adults looking for lower-risk alternatives while doing little about youth demand. Meanwhile, countries like Sweden provide examples of how reduced-risk products (in this case, specifically nicotine pouches and snus) can lead to major declines in smoking rates. Similarly, Japan saw huge drops in cigarette sales after heated tobacco products became widely available.

For those advocating harm reduction in Canada, current trends look worrying—they fear the situation is headed in the wrong direction with heavy taxes, flavour bans, and negative messaging. All these factors are limiting legal access while keeping cigarette use alive and well alongside growing illegal markets.



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