Budget Leitao 2018: no profit on the cannabis, but of Cities satisfied

Photo AFP
Quebec expects revenues of$ 23 Million for 2018-2019 in the excise tax on the pot.

Annabelle Blais

Tuesday, march 27, 2018 16:17

UPDATE
Tuesday, 27 march 2018 23:03

Look at this article

QUÉBEC | The provincial does not intend to make profit with the selling of cannabis in the first two years following the legalization, but the Cities will still be able to take advantage of a subsidy of $62 million.

The government expects revenue of $ 23 million for 2018-2019 in excise tax and $ 50 million the second year. According to an agreement in principle with Ottawa, Québec would receive 75% of the excise tax, which is 1 $ per gram or 10 % of the sale price of the producer.

But the creation of points of sale, or payment of $ 25 million for the Funding of prevention and research will result in many expenditures. .

READ ALSO

• A budget is generous funded by the surplus past
• 9 things to know about the budget Leitao 2018
• The “blur” to the nurses
• Millions $ for a digital transition in schools
• A new tax credit for the purchase of a first home

Thus, it is anticipated a shortfall of $ 9 million in 2018-2019 in order to achieve equilibrium in 2019-2020.

“We are at the beginning of the process […] there’s a lot of uncertainty,” said the minister of Finance Carlos Leitao.

These forecasts conservative can be explained in particular by the desire of Quebec to offer competitive prices to counter the black market, says the ministry of Finance.

But unlike the Trudeau government, which announced in its last budget a reduction target of 29 % of the illicit market, Quebec city has not made clear its target.

It is expected to grant to the municipalities of the envelopes 26 million and $ 36 million – to a total of 62 million – over two years. More than half of these amounts will come from revenues from the sale of cannabis and the rest will come from the public treasury. .

READ ALSO

• Quebec enhances the tax credit for child care costs to the private
• The government Couillard wants to do away with the unreasonable time-limits within five years
• A prize pool of $ 1.2 billion for the tramway in Quebec
• Taxis offset thanks to drivers
• Quebec taxera Netflix

The fight against smuggling

This money will fund, in particular, to the tune of $ 10 million the first year and 20 million the following year, the creation of a committee for concerted Actions to counteract the savings in underground (ACCESS” cannabis “). Its mission will be to limit access to the pot in young people in addition to combating smuggling.

This committee will be composed primarily of the police, the ministry of public Safety and the Director of criminal and penal prosecutions.

The Union of Quebec municipalities say they are satisfied of the sums announced.

“At the outset, there are fixed costs to our municipalities which will not be related to the volume of consumption, has reacted Alexandre Cusson, president of the UMQ. So having fixed amounts that correspond to what is assessed […] this is correct. “

READ ALSO

• A tax holiday for SMES
• The shortage of labor in the crosshairs of the government
• More than$ 50 Million for the sharks at the Aquarium du Québec

The pot income and deficit

Taxes – Part of Quebec (75 % of the excise tax)

• 2018-2019: 23 MS
• 2019-2020:$50 Million

Losses

• 2018-2019: 9 MS
• 2019-2020: No

*Income from January to march, 2017. Source : MSSS and INSPQ, after 30 days