Unpaid federal excise duty is piling up in Canada’s cannabis industry, with excise debt more than tripling to 52.4 million Canadian dollars ($40 million) as of March 2022, up sharply from CA$16 million owed in March 2021, according to an MJBizDaily analysis of Canada Revenue Agency data.
That suggests at least 20% of all federally regulated companies owe the federal revenue agency money, the latest sign that excise-duty burdens are weighing on already-struggling cannabis producers, industry officials say.
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They cite falling marijuana prices and fierce competition as among the factors making it difficult for producers to pay their excise duties – which are levied on a variety of cannabis products – in a timely manner.
“The cannabis industry is making a choice, whether to pay its taxes or to keep the lights on,” Dan Sutton, CEO of British Columbia-based cannabis producer Tantalus Labs, told MJBizDaily.
Canada’s excise duty
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