Dept of Finance Canada: Cannabis Excise Tax on Oct 17th
CANNABIS STOCKS: Dept of Finance Canada Consulting Canadians on Draft Regulatory and Legislative Proposals Relating to Taxation of Cannabis
07:47 AM EDT, 09/18/2018 (MT Newswires) -- The Canadian federal government overnight Monday released for consultation a set of technical draft regulatory and legislative proposals under the Excise Act, 2001 that would provide for the additional excise duty rates for each province or territory that has signed a CCTA with the government. These rates would come into effect when cannabis for non-medical purposes becomes available for legal retail sale, on October 17, 2018.
In keeping with the agreement reached by Finance Ministers, a statement noted that under the CCTAs, revenues from the excise duties on cannabis products will be shared on the following basis: 75% to provincial and territorial governments, and 25% to the federal government. It also noted provinces and territories will work with municipalities according to shared responsibilities towards legalization. In addition, federal revenues from the excise duty on cannabis will be capped at $100 million per year for the 24 months that follow the legalization of non-medical cannabis. Excess federal revenues over the $100 million cap will be provided to provinces and territories that have concluded a CCTA with the federal government.
According to the government's statement, this consultation also seeks comments on additional regulatory proposals that would provide: exemptions for certain entities to allow the possession of cannabis products stamped for multiple jurisdictions, under certain conditions; the ability for third parties to possess cannabis excise stamps for specific purposes; and exemptions from the proposed excise duty for certain cannabis-based products that are not intended for human consumption.
Canadians are invited to provide comments on the draft regulatory and legislative proposals...