Tuesday, the Government of Saskatchewan introduced amendments to The Provincial Sales Tax Act, 2025 to remove the provincial sales tax (PST) exemption on vapour products. Effective June 1, 2025, the provincial sales tax rate of six per cent will apply to all vapour products in addition to the existing vapour products tax, states a provincial government news release.
Initially announced as part of the 2025-26 Budget, the PST on vapour products is anticipated to increase PST revenues by $3 million annually. However, the benefits are expected to reach far beyond tax revenue.
The government release points out that nicotine exposure is known to harm healthy brain development in youth and young adults, which can lead to problems with learning, memory and mood and can increase the risk of addiction to other substances.
"We applaud the Saskatchewan Government for its recent announcement that a provincial sales tax will be added to all vapour products," Lung Saskatchewan President and CEO Erin Kaun said. "Increased taxation is one of the most effective strategies in reducing consumption, particularly among youth. We look forward to continuing to work with the government to support a healthier Saskatchewan."
