Federal Government Proposes Cannabis Tax Plan

Article by Lift News

Government proposes cannabis tax plan The proposed federal excise duty rate would be 50 cents per gram of cannabis, or 5% of the producer’s sale price of that product. An additional rate would...

The federal government announced today their plans for a tax on cannabis to not exceed $1 a gram or 10% of the price of the product, splitting the excise duty rate at 50 cents a gram to the federal government and 50 cents to the provinces/territories.

The proposed duty would apply to all cannabis products available for legal sale, including fresh and dried cannabis, cannabis oils, as well as seeds and seedlings for home cultivation. The rate will also apply to the sale of medical cannabis, which is tax deductible.

Cannabis products that are produced by an individual or a designated grower for an individual’s own medical purposes in accordance with the proposed Cannabis Act will not be subject to the excise duty. Seeds and seedlings used in this production will be subject to duty.

As examples, one gram of dried cannabis, at a pre-duty price of $8 a gram would have an excise tax of $1, plus GST/HST of $1.17, bringing the total cost to $10.17 a gram. A $130 bottle of cannabis oil would have excise duty of $13, GST/HST at $18.59, for a total of $161.59.

The government says their aim to to set a level of taxation low enough to compete with the black market while being high enough to both discourage the use of cannabis and provide government revenue to manage the program.

All these measures are still pending Parliamentary approval.

Read full article here.

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