Fees charged to cannabis businesses by the Canadian government are contributing to challenges in achieving profitability and positive cash flow, according to a “cost recovery” analysis published by the federal regulator, and some of the fees disproportionally affect smaller businesses.
The report is intended to help inform Health Canada’s ongoing “independent” legislative review of the Cannabis Act.
The Health Canada report on fees shows that the government spent 430 million Canadian dollars ($317 million) on cannabis regulation between 2018-19 and 2021-22. The federal government’s fiscal year concludes at the end of March.
To transfer some of the costs related to cannabis regulation from taxpayers to the industry, the government collected CA$160.2 million from legal marijuana businesses through various fees in that time.
Those fees (and the amount collected) between 2018-19 and 2021-22 are:
The annual regulatory fee accounted for 91% of all cannabis fee revenue collected by Health Canada in that time period.
The report found that 37.5% of micro license holders reported that fees accounted for more than 10% of operating costs...
To read the full article: MJBIzDaily
To read the report: Espace membres