Change in Cannabis Excise Tax Canada Long over due but, hopefully in April there will be changes to the excise tax. The bottom line for LP's will improve. This will be significant for Tilray Brands.
The change calls for moving from a rate of $1 per gram or 10% of a producer’s selling price (whichever is higher) to a 10% ad valorem rate. This rate currently applies to dried or fresh cannabis, cannabis plants and cannabis plant seeds.
Tax on cannabis extracts, edibles and topicals is a flat rate of $0.01 per milligram of the total THC of the cannabis product. These products would not be subject to an ad valorem duty rate, unlike dried cannabis, fresh cannabis, cannabis plants and cannabis plant seeds.
The committee also calls for investments for First Nations engagement in the Cannabis Act review, with the Assembly of First Nations calling for $50 million over the next five years.
The recommendations from the House of Commons Standing Committee on Finance (FINA) are part of the recent Report of the Standing Committee on Finance. The report is based on meetings launched in June 2023 in anticipation of the 2024 budget due in April.
The Committee also held pre-budget hearings in the fall between September 21, 2023 and November 17, 2023. In addition to meetings in Ottawa, the committee travelled across Canada to hear from a range of Canadians.
The Committee also invited other House of Commons standing committees for the purpose of holding meetings and providing recommendations for its pre-budget consultations.
The committee heard nearly 170 presentations and received over 850 written briefs, the largest number ever received for that process.