Tilray Brands - Canadian Cannabis Update
Canada’s House of Commons Standing Committee on Finance has recommended a change in how cannabis is taxed.
discussion:
- How long would it take to implement the tax code changes in Canada if approved? Immediate or would there be a buffer period? Any Canadians on here with some insight?
- If they pass it in the upcoming budget it would start immediately on April 1st which is the new fiscal year.
- Well, last year was March 31st for 2023. I strongly believe it's going to happen because, first of all, the original tax was supposed to be 10%, and the government formula used to implement the 10% tax created an approximately 35 % tax. The other reason is that Trudeau said he will take care of it wanting 5 year cannibis review which I believe hasn't been completed yet, however this part of the review and recommendation has been completed and its logical for them to get this out now so it can be incorporated in the 2024 budget, because this is a real pressing issue for the industry and its time to correct this egregious error.
- Listen, you're wrong. First, it's not a tax break it's an egregious error. No industry in Canada faces a 35% excise tax. And if you know the history and the formula used, it was supposed to be 10%, but the way they implemented the tax made it 35%. Also, if you go back to
Q 1 and Q 2 2023/2024, Tilray's operations are real close to or at
cash flow positive. If this gets done, expect reissuing of Q1 and Q2 2023/2024 earnings reports.