PM proposes federal pot tax
First ministers talk revenue sharing
OTTAWA — Prime Minister Justin Trudeau is proposing to levy a federal excise tax on recreational marijuana once it becomes legal next July, with the provinces and territories receiving half the revenue.
Under a federal proposal put to premiers during a first ministers meeting Tuesday, each gram of pot would be subject to an excise tax of $1 on sales up to $10 and a 10 per cent tax on sales of more than $10. The premiers argued provinces will foot the lion’s share of the cost of regulating the new regime and should, therefore, get the lion’s share of the revenue.
Trudeau said the level of taxation on marijuana and revenue sharing are still under negotiation with the provinces. He acknowledged there will be “significant new costs” associated with legalizing pot and said he’s open to provincial arguments that they’ll bear the brunt of them. He emphasized the goal of legalization is not to make money.
“Our goal from the very beginning on the legalization and regulation of marijuana was not to make profits, to bring in tax revenue,” Trudeau told a wrap-up news conference following a meeting with provincial and territorial leaders.
Rather, he said, “all first ministers are fully aligned” on the goal of keeping marijuana out of the hands of kids and out of the control of criminal gangs.
Any taxes imposed on marijuana will have to be sufficiently low to keep the price low enough to force the black market out of business, said Nova Scotia Premier Stephen McNeil. Consequently, he said, “I don’t think we should run out and start spending tax dollars based on cannabis.”