Cannabis growers warn of Ottawa's new tax plan

Marijuana companies warn that Ottawa's decision to impose additional taxes of $ 100 million to recover regulatory costs – adding to the hundreds of millions of government revenues expected from taxes excise – will undermine their ability to undermine the black cannabis market.

Health Canada, which recently announced a 2.3% "annual regulatory tax" on the gross revenues of major cannabis producers, is facing a decline in the industry as a result of the legalization of the market recreation in October.

This tax would be added to the excise tax of $ 1 per gram on cannabis that has already been announced and will go mainly to the provinces. Health Canada gives 30 days to businesses and other interested parties to comment on the plan

According to the federal agency, the proposed fee would allow the federal government to cover all its costs by 2020,

However, in an interview with the Globe and Mail, a spokesperson for a coalition of several of the largest cannabis producers in Canada said the new tax would be premature and would hurt the fledgling industry as it tries to compete. with well-established illegal producers.

"We do not believe that it is appropriate to promulgate this new policy until we have a few years to our credit and that we have solid data to track our success in We are getting closer to our goal of suppressing the black market, "said Allan Rewak, executive director of the Cannabis Council of Canada.

MM Rewak, who stated that the Council was concerned and surprised by the proposal, pointed out that this could have an impact negative on the business models of many players in the industry. "Obviously, the industry wants to pay its fair share and contribute," he said. "But the timing is extremely problematic, Many of our members have signed multi-year supply contracts that have not taken into account this very, very important extra cost. "

Mr. Mr. Rewak indicated that a formal presentation will be made in the coming weeks to Health Canada to oppose the proposed fee structure, or at least to delay its implementation. Known as C3, the board represents companies such as Canopy Growth Corp., Aurora Cannabis Inc. and Tilray Inc.

Deepak Anand, a consultant in the cannabis industry, said Tax exemption on "I am afraid that this will lead to an increase in medical production and sales at a specific site, which could reduce the strain and selection of products available to medical patients." [19659013] History Continues Under Advertising