The Department of Finance (DOF) is on-board with the Canadian government’s proposed recreational marijuana tax $1 Canadian dollar per gram, which is roughly a 10% tax.
Canadian marijuana businesses are quite happy about this news, CNN Money reports. The new tax will apply to both medical and recreational marijuana. The recreational marijuana market should be in operation by July 2018.
The DOF said that, “The proposed level of taxation is intended to keep prices low to eliminate the black market.”
The news of the low tax rate has already sent Canadian marijuana stock prices soaring. Some stocks have already risen as much as 15%.
Feedback regarding the proposed rate is being accepted till December 7. The funds received from tax revenue will be “divided equally between the province or territory and the federal government.”
The DOF said, “Revenues raised from the taxation regime will help support investments in public education, enforcement, research and other activities integral to the effective system of legalization and regulation of cannabis.”
Photo: flickr (goo.gl/hUXrBF)