New Excise Tax Puts Blackmarket Cannabis Producers on Notice

Just in time for Canadian legalization, the Liberal government has set up an excise tax stamp system for cannabis similar to the one it has in place for tobacco.

Under the country’s amended Excise Tax Act, illicit cannabis producers could face huge fines or five years of imprisonment—on top of the potential 14-year prison terms they already face under the Cannabis Act.

Through the new system, the Canadian government is imposing a 10% excise tax on both medical and non-medical cannabis products. That’s on top of sales tax that consumers and patients across the country will pay on their cannabis at the check-out aisle. Customers won’t see a direct added cost from the excise tax, which is paid by producers before sale, but there’s nothing stopping producers from increasing their retail prices in accordance with their costs.

How it works: All producers and processors of cannabis in Canada must apply for an excise tax license and report to the Canadian Revenue Agency the amount of duty they owe, based on the amount of cannabis that was produced or processed. The CRA will then send excise stamps to the company, which will affix one stamp to each and every cannabis product that leaves their doors. End consumers will know that the production of their cannabis product complied with the excise stamp regime by the presence of the stamp affixed to it.

Read The Whole Article At LEAFLY
Written By: HARRISON JORDAN

Leave a Reply

Your email address will not be published. Required fields are marked *

%d bloggers like this: