Ottawa will charge GST on recreational marijuana in addition to the planned excise tax of $1 a gram, threatening to make legal cannabis more expensive than its black-market competition.
The federal government’s plan to legalize marijuana by July 1 is designed to replace the illegal market with a heavily regulated industry, but experts say the final sales price will be key to its eventual success or failure. Parliamentary Budget Officer Jean-Denis Frechétte warned Wednesday in a blog post that an excise tax would likely push the price of legal marijuana above black-market prices observed in 2015-16.
Ottawa announced the planned excise tax on Tuesday, stating that the revenue would be shared equally with provincial governments.
Daniel Leblanc and Laura Stone – Globe and Mail – October 4, 2017.
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