Canadians to officially pay $10 per gram for legalized pot
Canadians will pay $10 per gram when purchasing legalized pot in 2018 and beyond.
As well, provincial governments will receive 75% of the tax revenues while the federal government will get 25%.
The decision was reached on December 11 at a meeting between Federal Finance Minister Bill Morneau and provincial and territorial counterparts.
Each gram of marijuana will have a $1 tax on sales up to $10. Sales over $10 will be taxed 10%.
“This will support the Government’s goals for cannabis legalization, keep it out of the hands of kids and profits out of the hands of criminals,” said the Government of Canada, in a release.
The 75-25 tax split between the federal and provincial governments will be implemented for the first two years. The federal portion of marijuana tax revenue will be capped at $100 million per year. Any excess amount will be allocated to provinces and territories.
“I thank my colleagues for their work. Canada’s Finance Ministers have a proven track record when in comes to working together, and this year’s meeting is yet another example,” said Morneau in a statement.
“We have taken action on international tax evasion and money laundering, and we are moving forward with a better approach to cannabis and a stronger CPP. I look forward to continue building on this productive partnership in the months and years ahead.”
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