Latest news with #CannabisCouncilofCanada
Business Wire
21-05-2025
- Business
- Business Wire
Cannabis Council of Canada Welcomes the Findings of Deloitte Report and Calls for Change to the Excise Tax to Strengthen Canada's Legal Cannabis Industry
OTTAWA, Ontario--(BUSINESS WIRE)--The Cannabis Council of Canada echoes the urgent need for excise tax reform as outlined in Deloitte's 2025 study on the Impact of the Cannabis Excise Tax. The report confirms what Canada's cannabis producers have long expressed: the current excise tax model is unsustainable and must be restructured to reflect the economic realities of the industry. 'Canada likes to position itself as a global leader in legal cannabis – but since legalization in 2018, the federal government has failed this industry and the tens of thousands of hardworking Canadians it supports,' said Paul McCarthy, President of the Cannabis Council of Canada. 'With a new government in office, it's time for a fresh approach. The cannabis industry deserves the same attention and support as any sector of our economy.' Canada's cannabis industry is a major driver of economic growth - since legalization it has contributed over $43 billion to the national GDP, with approximately $7.4 billion contributed in 2024 alone. To keep that momentum going, key policy changes are needed to ensure the industry can grow, compete and innovate. The current excise taxation framework is completely misaligned with today's market realities. When it was introduced in 2018, cannabis sold for approximately $10 per gram. Today, producers are receiving as little as $3 per gram – yet the excise tax remains the greater of 10% of the product's value or $1 per gram. This has created a crushing and unintended tax burden that now is three times higher than what was originally envisioned. Instead of thriving, licensed producers are being pushed to the brink – many are unable to meet their tax obligations and are being forced out of the market, taking good jobs with them. If not fixed, Canada risks losing the very businesses it once championed through legalization. The Cannabis Council of Canada calls on the Government of Canada to eliminate the $1 per gram floor and instead apply a 10% ad valorem rate as proposed by the Standing Committee on Finance in 2024. The industry's challenges extend well beyond taxation. Since legalization, the previous government largely turned a blind eye to the persistent illicit cannabis market, allowing criminal actors to thrive at the expense of licensed businesses. This undermines the foundation of legalization and the promise of a safe, regulated cannabis industry. Illicit cannabis is estimated to make up between 25% and 40% of total sales in Canada – an unacceptable reality that demands urgent federal action. For the cannabis industry to thrive, the Government of Canada must act to eradicate criminal forces from the industry. Elements of a comprehensive strategy must include tackling illegal production, shuttering illegal storefronts and online sales, interdicting shipments of illegal product, and launching a public awareness and education campaign on the dangers of supporting the illicit market. Many consumers who purchase cannabis online do not realize they are purchasing illegal products, nor do they recognize how harmful these products can be. Not only do these transactions support other crimes, but they also pose a significant threat to public safety. About Cannabis Council of Canada (C3) The Cannabis Council of Canada (C3) is the national voice of the legal cannabis industry, representing Licensed Producers and Processors. C3 advocates for sensible cannabis policies that prioritize public health and safety, support economic growth, and promote social responsibility.
Calgary Herald
20-05-2025
- Business
- Calgary Herald
John Ivison: Punitive taxes are killing the legal cannabis industry
Article content If you want to be a millionaire, start with a billion dollars and launch a cannabis production company in Canada. Article content Article content In the original version of his famous quote, British entrepreneur Richard Branson was highlighting the challenges and capital intensive nature of the airline industry. But a new report by consultancy firm Deloitte, due for release on Wednesday, paints a similar picture. Article content Article content The report looked at the impact of Canada's cannabis excise tax and concluded the industry's financial viability is in question because of high taxes. Article content Article content The Cannabis Act of 2018 was a cornerstone piece of legislation for the Trudeau government, which pledged to 'outflank' organized crime by undercutting the black market for pot. Article content But the new report suggests that illicit producers still control between one quarter and a half of the market, partly because a punitive excise tax regime raises costs for legal producers. Article content The Deloitte report, commissioned by the Cannabis Council of Canada, said that the excise tax paid to governments accounted for 31.5 per cent of gross production revenues last year, at a time when prices are falling. Article content It would, of course, be rare to find an industry that endorses the amount of tax it is paying. Article content However, the government's own expert panel, which conducted a legislative review of the Cannabis Act last year, noted the industry's 'urgent concerns' about viability and said they were 'well founded.' Article content Article content Deloitte looked at the financial results of 36 licensed cannabis producers between 2019 and 2024 — nine of which filed for insolvency during the period under review. Article content Article content The share of production revenues diverted to excise taxes doubled in that time, making it the largest single expense. Article content When the excise tax was set at $1 per gram or 10 per cent of the value of dried or fresh cannabis seeds (whichever was greater), prices were around $10 per gram. But the flood of new entrants to the market, and the stubborn illicit market, lowered the price to around $3-4 per gram, sending the effective tax rate over 30 per cent. Article content The industry has argued that the excise duty should be adjusted to a uniform 10 per cent of value and the flat rate of $1 per gram should be eliminated entirely.
National Post
29-04-2025
- Business
- National Post
Cannabis Council of Canada Congratulates Mark Carney and Calls for Immediate Action to Strengthen Canada's Legal Cannabis Industry
Article content OTTAWA, Ontario — The Cannabis Council of Canada today congratulated Mark Carney on his election victory. As the new government takes shape, the Council renewed its call for policymakers to address glaring gaps and shortcomings in the legal cannabis industry. Article content Article content 'Canada likes to position itself as a global leader in legal cannabis – but since legalization in 2018, the federal government has failed this industry and the tens of thousands of hardworking Canadians it supports,' said Paul McCarthy, President of the Cannabis Council of Canada. 'With a new government in office, it's time for action. The cannabis industry deserves the same attention and support as any sector of our economy.' Canada's cannabis industry is a major driver of economic growth – since legalization it has contributed over $43 billion to the national GDP, with approximately $7.4 billion contributed in 2024 alone. To keep that momentum going, key policy changes are needed to ensure the industry can grow, compete and innovate. Article content The solutions to unlocking the industry's growth and potential are achievable and clear. Article content The current excise taxation framework is completely misaligned with today's market realities. When it was introduced in 2018, cannabis sold for approximately $10 per gram. Today, producers are receiving as little as $3 per gram – yet the excise tax remains the greater of 10% of the product's value or $1 per gram. This has created a crushing and unintended tax burden that now is three times higher than what was originally envisioned. Instead of thriving, licensed producers are being pushed to the brink – many are unable to meet their tax obligations and are being forced out of the market, taking good jobs with them. If not fixed, Canada risks losing the very businesses it once championed through legalization. Article content The Cannabis Council of Canada calls on the Government of Canada to eliminate the $1 per gram floor and instead apply a 10% ad valorem rate as proposed by the Standing Committee on Finance in 2024. The industry's challenges extend well beyond taxation. Since legalization, the previous government largely turned a blind eye to the persistent illicit cannabis market, allowing criminal actors to thrive at the expense of licensed businesses. This undermines the foundation of legalization and the promise of a safe, regulated cannabis industry. Illicit cannabis is estimated to make up between 25% and 40% of total sales in Canada – an unacceptable reality that demands urgent federal action. For the cannabis industry to thrive, the Government of Canada must act to eradicate the criminal forces from the industry. Article content Elements of a comprehensive strategy must include tackling illegal production, shuttering illegal storefronts and online sales, interdicting shipments of illegal product, and launching a public awareness and education campaign on the dangers of supporting the illicit market. Many consumers who purchase cannabis online do not realize they are purchasing illegal products, nor do they recognize how harmful these products can be. Not only do these transactions support other crimes, but they also pose a significant threat to public safety. Article content A recent Government of Canada laboratory test showed that 94% of illegal cannabis products contained pesticides. They also found traces of Escherichia Coli, indicating the presence of fecal contamination. Article content Finally, in the spirit of building a more resilient Canada and removing interprovincial trade barriers, the Cannabis Council of Canada also calls on the Government of Canada to work with the provinces and introduce a single national excise stamp for cannabis. The cannabis excise stamp is a regulatory tool indicating tax compliance – which the legal industry supports. Article content However, under the current system, each province and territory requires its own unique cannabis excise stamp. This red tape adds costs and complexity for legal producers distributing products nationwide, placing a significant burden on an industry that is committed to being law-abiding, consumer-focused, and financially viable. The December 2024 Fall Economic Statement signalled the federal government's intention to adopt a single national stamp. The Cannabis Council of Canada welcomes this signal and urges the government to deliver on that commitment without delay. Article content The Cannabis Council of Canada once again congratulates Prime Minister Mark Carney. Our industry is asking the Government of Canada to remove the shackles which is preventing further economic growth and ensuring that Canada is a global leader in the legalized cannabis industry. Article content Article content Article content Article content Article content Contacts Article content Article content Article content
