The federal government’s plan for a 10 per cent “sin tax” on legalized recreational marijuana sales sounds good to the head of Canada’s largest, publicly-traded marijuana producer.
“This is sort of at the mid-to-low point on the models we ran. It’s a comfortable number. It works,” said Bruce Linton, founder and CEO of Canopy Growth Corp. He notes that it’s lower than the excise tax on other “optional or luxury products,” such as alcohol.
The federal government laid out its pot taxation plan on Tuesday during a meeting with the premiers. Prime Minister Justin Trudeau proposed an excise tax of $1 per gram of cannabis for pot sales up to $10, with a floor of 10 per cent of the total price for pot selling over $10, once the drug is legalized in July 2018.
That tax would be in addition to the federal and provincial sales taxes. So while the total amount of taxes paid will vary from one province or territory to another, it could mean a combined tax rate of roughly 25 per cent in several provinces. All while the legal product tries to compete with black market producers who won’t pay any tax at all.
Catherine Cullen – CBC News – Oct 05, 2017.
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