I am contacting you because I care about the legal cannabis industry in Canada.
The cannabis industry has created over 50,000 well-paying jobs and provides quality, safe products to Canadians. Unfortunately, this sector is at significant risk. Licenced Producers and Processors are struggling to make ends meet in ridings across the country - including yours. Thousands of jobs are disappearing, while the illicit market continues to thrive.
The current review of the Cannabis Act is an important opportunity to address these issues, but without urgent action from the Government of Canada, many companies will not survive to see it implemented.
Save Our Sector Relief Package
We are asking for your support to provide immediate relief to struggling LPs.
- Reform the Excise tax to the original 10%. The excise tax for dried cannabis is $1/gram or 10% of the sale price, whichever is higher. This was based on an anticipated price of $10/gram. With average selling prices well below $4/gram LPs are paying Excise tax rates near 35% rather than the priced 10%.
- Put a moratorium on Health Canada’s 2.3% annual regulatory fee, pending the outcome of the Cannabis Act review. This would represent a sign of good faith from the government and provide relief to struggling businesses in the short term.
Here’s how you can help:
Please reach out to Ministers of Health and Finance, and the Deputy Prime Minister and Prime Minister of Canada to signal your support for this relief package.
Thank you for your support.
Our call for urgent action was recently covered in an article for the Toronto Star.
More information on the Excise Tax, please see EY’s report, Economic Analysis of Cannabis Excise Duties, Mark-Ups and Regulatory Fees.