Ottawa will impose an excise tax on cannabis

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Maxime Huard

Tuesday, October 3, 2017 18:08

UPDATE
Tuesday, 3 October 2017 20:33

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OTTAWA | The federal government will impose an excise tax on the sale of cannabis once the product is legalized in Canada, the earnings of which would be shared half with the provinces.

The federal government intends to impose a tax of $ 1 grams of cannabis sold at a price less than $ 10. Beyond $ 10, this fee would be 10 % of the price of the gram.

The revenues from this tax would then be “divided 50/50 between the federal and provincial governments,” said the canadian prime minister, Justin Trudeau, on Tuesday, after a meeting with his counterparts in the provinces and territories in Ottawa.

If none of the first ministers of the provinces has openly criticized the federal proposal, many have pointed out that the majority of the expenditure related to the legalisation of cannabis responsible.

“There are a lot of costs associated,” said the premier of Québec, Philippe Couillard. “I am encouraged to see the opening of Mr. Trudeau to this we had discussions on the sharing of tax revenues, because a lot, a lot of work and weight will fall on the shoulders of the provinces.”

“Our Finance department is of the opinion that most of the burden of the legalization of cannabis will be raised by the provinces. Thus, we believe that the lion’s share of the revenues should revert to the provinces,” said his side the premier of Nova Scotia, Stephen McNeil.

The premier of British Columbia John Horgan recalled that “the provinces are concerned about the costs involved in the distribution, regulation and the need to keep organized crime out of the process”.

Without encrypt their requests, all the provincial leaders who have spoken have stated that the discussions on this issue were to begin. Other negotiations will need to take place between levels of government and by the entry into force of the legalisation of cannabis, a reality that the canadian prime minister has recognised from the outset.

“My friends of the provincial, have raised their perspective and perhaps there should be more money for them. It’s part of the discussions that we have,” said Justin Trudeau.

The liberal government wants the legalisation of cannabis to be effective as of July 1, 2018.