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The Cannabis Act is still working out its kinks as time goes by, but there has been some clarification as to the tax laws that have come into being. Since the businesses and processes are all still very new, businesses and medical users have had trouble navigating the tax laws.

When the Finance Minister initially tabled the 2019 budget plan that had the rules on cannabis taxation, there were some changes that should be brought to the attention of the cannabis industry.

The first change includes changes to the excise tax. The excise tax will calculate the tax based on the weight of the cannabis within its packaging or based on the cost of a product’s sale price.

The second change is that the government will sort out the federal tax on the amount of THC within a cannabis product. The purpose of these taxes is to make it easier to sort out excise duties and make it easier to comply with them.

Even more confusing is that cannabis oils are not looked at the same way as edibles or other materials. Even the form of cannabis can affect how much it is taxed, and every company will need to do its due diligence to get it right.

A concern is that companies will not pay the right tax upfront and will then be forced to pay, unexpectedly, something more at a later date. As it becomes more regulated, it should be easier to work out.

~ Source: Budget 2019 clears the air on cannabis taxes

  Posted: Thursday, October 17th, 12:00pm 2 months ago

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