The amount of unpaid federal excise tax owed by Canada’s cash-strapped licensed cannabis producers more than tripled in the latest fiscal year from a year earlier as companies complain they’re getting buried by government fees and levies.
Federally licensed cannabis producers owed the Canada Revenue Agency 192.7 million Canadian dollars ($145 million) as of March 31, 2023, a more than threefold increase over the 2021-22 fiscal year’s CA$52.4 million.
ADVERTISEMENT
Levy debt has been on a steep upward curve since Canada legalized cannabis in 2018.
Canada’s excise duty imposed on producers’ dried cannabis is either CA$1 per gram or 10% of the value of the gram, whichever is greater.
As of the end of March, the levy debt stood at:
CA$147,425 in 2019. CA$4.4 million in 2020. CA$16 million in 2021.
“This massive and accelerated growth of total excise owing as well as total number
Read full article on Marijuana Business Daily
