Canadian Prime Minister Justin Trudeau has proposed a 10% tax on the total turnover generated by cannabis sales. Whether it concerns cannabis seeds, herbs, concentrates or edible, half of the tax revenue goes to provincial governments and half to the federal government.
Trudeau indicated that the proposed tariff would be low enough to compete with the illegal market and that this rule is not only about income, but rather about the protection of children from street vendors.
The approach is not just for catching up with tax revenues,”said Trudeau.
However, Nova Scotia Premier Stephen McNeil prefers that the provinces receive 100% of the tax revenue from cannabis, because provincial leaders also bear the burden of regulation and it would be unfair to pay back.
According to Cam Battley, Executive Vice-President of Aurora Cannabis Inc., illegal cannabis costs approximately $8 to $10 Canadian dollar across the country. Battley described the Prime Minister’s plan as’ reasonable enough’ and added that it would not be a’ very great obstacle’ for legal producers to compete with street sales.
“It is a critical objective in all respects to block the black market, to ensure tracking and reliability and to guarantee the best quality of products”.