Article by Marijuana Business Daily
The federal portion of Canada’s cannabis excise duty amounted to 32 million Canadian dollars ($23.7 million) from April 2019 through March 2020, according to new figures from the country’s finance department.
Although the cannabis tax revenue represents only a tiny fraction of the Canadian government’s total revenues for the period (CA$334.3 billion), it illustrates growth in Canada’s marijuana tax proceeds.
Canada’s cannabis excise taxes are collected by the federal government, which keeps 25% and shares the remaining 75% with provincial governments.
In May, the province of British Columbia reported record cannabis excise tax revenue of $2.5 million for December, boosted by new legal cannabis stores opening in the province.
Excise tax payments are expected to rise as more stores open their doors across the country.
The excise tax is payable by licensed cannabis producers when product is delivered to a purchase – usually to provincial wholesalers.