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Canada: Provinces Reach Tax Deal For Recreational Marijuana

Ron Strider

Well-Known Member
Canada's provinces will be getting the lion's share of the lucrative taxation revenues from legal cannabis.

The provinces have agreed in principle to a two-year tax sharing agreement that gives them a 75% cut of those eventual revenues.

Canada's governing Liberals are planning to legalize and regulate recreational marijuana by July 2018.

Provinces had rejected an earlier proposal to share the tax revenues 50-50 with the federal government.

In October, Canadian Prime Minister Justin Trudeau proposed a 10% federal excise tax on recreational cannabis products that should not exceed $0.78 (C$1.00; £0.58) per gram, or 10% of the sale price.

He also proposed that the revenues be shared equally between the two levels of government.

Provinces rejected that proposal, arguing they would bear most of the costs related to setting up the distribution framework for recreational marijuana, regulating the drug, as well costs related to policing and public health.

Each province is responsible for setting out the framework for the distribution of cannabis within its territory, and for regulating its distribution and retail sales.

After meeting with his provincial and territorial counterparts on Monday, federal Finance Minister Bill Morneau announced the sweetened revenue-sharing deal.

Under the agreement, the federal government will keep a 25% share to a maximum of $78m per year. Any additional revenue above will be redistributed to the 13 provinces and territories.

The federal government is also suggesting the ideal total final price for a gram of legal recreational marijuana should be around$8, in order to elbow out black market sales.

Canada's eventual retail marijuana market has been estimated to be worth $3.7bn to $5bn.



News Moderator: Ron Strider 420 MAGAZINE ®
Full Article: Canada, provinces reach tax deal for recreational marijuana - BBC News
Contact: http://www.bbc.co.uk/contact
Photo Credit: Getty Images
Website: Home - BBC News
 

Blair

New Member
I'm still miffed at the govt. pricing. They want to see a gram at $8.00. Without adding the tax, that's just about double what people here in the Okanagan pay everyday. So, if I get it right, with tax you're looking at almost $300.00 an ounce. OUCH !!!! That will put smiles on the black market sellers for sure. That won't fly.
 

CHED

Well-Known Member
They certainly aren't thinking logically. I get just as good if not better product on the streets and for a much better price. I have tried medical grade and dispensary product and I prefer street quality. Selling at that price i agree, aint happening!
 

Blair

New Member
It's still considerably more than what's available, at least here. Not that it matters. People that have a consistent source won't give it up regardless of the price. Besides, it's free to grow it. I grow outdoors and have enough to last more than a year even time. I'm truly looking forward to watching what happens in a year or so. If nothing else, it will be entertaining for sure.
 
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