Canadian cannabis businesses push for reform on 4th anniversary of legalization

Canadian cannabis industry leaders meeting in Ottawa, Ontario, this week hope to send an "urgent" message to federal lawmakers that excessive taxation is threatening the viability of legal businesses and could put legalization's public health goals at risk. The industry group said the demand centers on the fact that the excise tax producers have to pay is unfair because it was created for a much higher price of marijuana than it is now. Canada imposes an excise tax of $1 per gram or 10 percent of the value of each gram, whichever is higher, on dried cannabis from producers. Different excise tax rules apply to various cannabis derivatives and other products. However, the excise tax formula is set by policymakers who expect the wholesale price to exceed C$10 ($7.10) per gram. Instead, the actual price is more than 50 percent lower. George Smitherman, chief executive officer of the Canadian Cannabis Commission, said in a news release that the excise tax "is diminishing the prospects of regulated producers.

Source: mjbizdaily.com