http://aqic.ca/en/communiquesThe Association québécoise de l'industrie du chanvre et du cannabis (AQIC) joins the call from the Cannabis Council of Canada (C3) for an in-depth reform of the excise tax system. The Impact of the Cannabis Excise Tax study, carried out by Deloitte and sponsored by the two associations, confirms what we have long been denouncing: the current taxation system is unsustainable and out of touch with the economic realities of our industry.
Originally designed in 2018 for a market where cannabis sold for $10/g, the current excise tax remains equal to 10% of the value of the product or $1 per gram, whichever is higher. However, growers now receive as little as $3/g, raising the effective tax to over 30% - far beyond what was anticipated at the time of legalization. As a result, today's excise tax represents the biggest financial burden for cannabis businesses.
As a result, this tax burden is driving a large number of producers out of business, jeopardizing hundreds of jobs here in Quebec and tens of thousands nationwide. Worse still, this situation slows the development of the legal industry and encourages the resurgence of the illicit market, thus compromising the initial objectives of legalization: a safe, controlled and responsible market.
To read the full press release: click here
To read the study: click here
To read the open letter to the Right Honourable Mark Carney: click here
Chargement en cours...
