Ontario Considers Pricing Recreational Pot at $10 a Gram, Above Market Average

Article by Mike Crawley, CBC News

Ontario considers pricing recreational pot at $10 a gram Finance minister also ballparks $100M as potential annual gross tax revenue from legal pot. Two companies that have reached deals to provide New Brunswick's supply of recreational marijuana are projecting a retail price of $10 per gram. (Sean Kilpatrick/Canadian Press)

The government of Ontario is looking at setting retail prices for recreational marijuana in the range of $10 a gram, CBC News has learned.

Until now, the provincial government has been reluctant to make public any specific figures about the price of pot, the expected demand or potential revenues from taxation once cannabis is legalized across Canada next July.

But on Wednesday, in response to questions by CBC News, Finance Minister Charles Sousa indicated ballpark numbers on both retail price and revenue.

A price point of $10 per gram is “certainly something that we’re giving consideration to,” Sousa said at the Legislature.

“The intent is to have some uniformity with these prices across Canada,” said Sousa. He said marijuana pricing and taxation is to be discussed at the next meeting of the federal, provincial and territorial finance ministers, this fall.

The government of New Brunswick announced deals with two suppliers on Friday for about 9,000 kilograms of marijuana (about nine million grams) in the first year. Press releases by the companies involved estimated the total retail value of the agreements at $80 million to $100 million, which suggests a retail price of about $10 per gram.

The current street price of illicit marijuana varies across Canada and by the amount purchased, according to an analysis released last fall by the parliamentary budget officer. It revealed the current average price of weed in Ontario is $8.64 per gram.

Read full article here.

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