A group convened by the federal government to study the legislation that made cannabis legal is recommending the country review one of the industry's biggest gripes: excise taxes charged to pot producers.
A report compiling 54 recommendations from the five-person expert panel released Thursday urged Finance Canada to consider a new model that would increase excise taxes on products with high quantities of tetrahydrocannabinol, cannabis's psychoactive component, and lower fees on those with smaller amounts. It positioned the change as a way to move consumers away from high-THC products.
The tax, which the panel called a "substantial burden" for cannabis producers, amounts to the higher of $1 per gram or a 10 percent per-gram fee for dried and fresh cannabis, plants, and seeds.
It was set in 2018 when Canada legalized cannabis, and the government expected a gram of pot to sell for $10, at which price of 10 percent is $1. These days, it is easy to find products priced as low as $3.50 a gram, resulting in higher fees for producers who must still pay $1 per gram.
"We see an opportunity to update tax policy to reflect the current reality," the report said.
Read more at bnnbloomberg.ca