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Winnipeg Mayor Brian Bowman questions Prime Minister Brian Pallister's statement. Manitoba will not make money with cannabis.
On Monday, Pallister told the Association of Manitoba Municipalities' congress that the province would not share cannabis tax revenues with municipalities, including the City of Winnipeg.
He went on to say that cannabis sales would have no positive impact on the province's bottom line.
"There is no profit to be derived from cannabis and there is no evidence that it will make a profit, so do not ask for a share of the profits when there is no profit, "Pallister said at a press briefing Monday at the RBC Convention Center.
Bowman tweeted his dissatisfaction with this statement on Tuesday and confirmed this sentiment on Wednesday with a more detailed explanation.
Premier Pallister indicated that MB would maintain all federal excise tax revenues from the sale of cannabis. This means that unless MB donates income from the new provincial cannabis tax to municipalities, Wpg real estate taxpayers will have to pay for the city's new legalization costs.
& mdash;@Mayor_Bowman
"You look at the experience of alcohol, governments are collecting a lot of money.Alcohol, tobacco, governments are collecting a lot of money.The cannabis will be the same" said Bowman at City Hall at the end of an executive committee meeting policy.
"At the end of the day, I do not know where the numbers will be, Canadians will have to see," he said. "They are building schools with cannabis revenues, as I understand it, in Denver."
The city estimates that legal cannabis will generate $ 1.6 million in new annual costs. Manitoba municipalities want the provincial government to share cannabis excise tax revenues, as do other provinces.
The province also plans to apply a 6% tax on retail cannabis sales starting in January.
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