That’s a lot of money going up in smoke for recreational smokers, but the weed tax would be good for the government.
Legal Marijuana Weed Tax Could Yield $1 Billion Annually For Canada
Legal marijuana would potentially yield revenues of as much as Canadian $1 billion per year once the proposed weed tax takes effect!
According to MP Bill Blair, consultations regarding the proposed weed tax are now open until December 7. If approved in its present form, the new federal tax proposal can ensure that legal marijuana will be taxed a dollar per gram or 10% of the retail price.
The present form of the weed tax also stipulates that the total revenues will be distributed among the federal, provincial and territorial governments. If all goes well, MP Blair said, applying the tax on legal marijuana will bring a dramatic shift regarding profits getting into the hands of the government and away from criminal elements.
However, since the weed tax is still a proposal, the actual mechanics for having legal marijuana bring in revenues to the government remain estimates only. Canadian provinces and territories will need to approve the weed tax in principle for it to become law in their respective locales.