Politics News & Policy News Grow Business

BUDGET 2018: BC expects $75 million per year from marijuana revenues

Kenneth Chan Feb 21, 2018 2:08 pm 600

Future marijuana revenues for BC’s provincial government will not boost provincial coffers significantly, according to the BC NDP’s first budget released yesterday.

Forecasts show BC’s share of federal duty on cannabis will be $50 million for the 2018-19 fiscal year, rising during the subsequent full-duration fiscal years with $75 million per year in 2019-20 and 2020-21.

The lower figure for the first fiscal year is due to the uncertainty of when legalization will begin. It certainly will not be ready in time for Canada Day; all indications show Canadians will not be able to smoke legal recreational marijuana until late summer at the very earliest.

The federal government is collecting the new tax on marijuana, and anticipates it will generate about $1 billion per year. About half of these revenues will be divided amongst the provinces and territories.

Another contributing factor to marijuana revenues deals with the legalization of edibles, which are popular, but it is not expected to happen for at least another year after the initial general legalization.

Comparatively, BC’s tax revenues on tobacco alone is expected to be $825 million for 2018-19, up $95 million from the previous fiscal year due to a hike in tobacco tax rates effective this April.

The provincial government released its strict regulations for the purchase of legal recreational marijuana earlier this month.

See also
Dh newsletter logo

Get direct access to our top weekly content, contests, and perks.

Kenneth Chan
National Features Editor at Daily Hive, the evolution of Vancity Buzz. He covers local architecture, urban issues, politics, business, retail, economic development, transportation and infrastructure, and the travel industry. Kenneth is also a Co-Founder of New Year's Eve Vancouver. Connect with him at kenneth[at]dailyhive.com
© 2019 Buzz Connected Media Inc.