OTTAWA — A group convened by the federal government to study the act that legalized cannabis is recommending the country review the excise taxes it charges pot companies.
A report released by the five-person expert panel labelled the excise tax a “substantial burden,” noting it was originally designed when the average price of dried cannabis was significantly higher than it is today.
The excise tax amounts to the higher of $1 per gram or a 10 per cent per gram fee for dried and fresh cannabis, plants and seeds.
Cannabis producers have long lobbied for the tax to change because it was set when the government expected a gram of cannabis to sell for $10, but these days, it is easy to find products priced as low as $3.50 a gram.
The panel’s report outlined 54 recommendations in total that ranged from keeping the limit of THC, cannabis’s psychoactive component, at 10 milligrams per package to adopting “standard dose” language on labels.
Their report also delved into how the country could monitor and reduce youth access to cannabis and protect the health and safety of Indigenous communities.
This report by The Canadian Press was first published March 21, 2024.
The Canadian Press
