Article by CHEX
Licensed cannabis producers now know what fees they will have to pay with the Oct. 17 cannabis legalization date fast approaching.
Health Canada announced Friday four new fees with the purpose of fully recovering the costs of regulating the cannabis industry.
The fees announced that will take effect Oct. 17 are:
- Application screening fee: recovers the costs associated with screening new licence applications ($3,277 for standard licence applicants and $1,638 for micro and nursery licence applicants);
- Security clearance fee: recovers the costs associated with screening, processing, and issuing or refusing security clearances ($1,654);
- Import/export permit fee: recovers the costs associated with screening, processing, and issuing or refusing to issue an import or export permit for medical or scientific purposes ($610); and,
- Annual regulatory fee: recovers the aggregate costs of administering the cannabis regulatory program that are not covered under any of the other fees (2.3% of cannabis revenue for standard licence holders, or $23,000 if cannabis revenue is less than $1 million, and 1% on the first $1 million of cannabis revenue for micro and nursery licence holders or $2,500 in cases where cannabis revenue is less than $250,000).
Licensed producers of cannabis exclusively for medical purposes will not have to pay the annual regulatory fee.
Health Canada says annual costs include activities such as licensing, public education and program management that the fees are intended to help cover.