Ottawa, Ontario – Finance Minister Bill Morneau issued the following statement:
“Canada’s Finance Ministers built on their strong record of working together, and endorsed an agreement in principle to coordinate the taxation of cannabis across the country. The agreement supports our twin goals of keeping cannabis out of the hands of youth, and profits from its sale out of the hands of criminals as we work to legalize and strictly regulate access to cannabis.
“Ministers agree to ensure, for two years, that the combined rate of all federal, provincial and territorial cannabis-specific taxes will not exceed the higher of $1 per gram, or 10 per cent of a producer’s selling price. This tax room will be shared on the following basis: 75 per cent to provincial and territorial governments; 25 per cent to the federal government. Provinces and territories will work with municipalities according to shared responsibilities towards legalization. The federal portion of cannabis excise tax revenue will be capped at $100 million annually. Any federal revenue in excess of $100 million will flow to the provinces and territories. Finance Ministers will review the implementation of the agreement at their December 2018 meeting to ensure broad objectives are being met.
“I thank my provincial and territorial colleagues for their ongoing collaboration in getting results for Canadians and our municipal partners for lending their voice to this important discussion. I also want to thank my colleague Bill Blair, Parliamentary Secretary to the Minister of Justice and Attorney General of Canada and to the Minister of Health, for his leadership, advocacy and tireless efforts to keep our kids safe and put criminals out of business.”
Source: Department of Finance Canada