Feds ‘shooting themselves in the foot’ on cannabis excise tax as some producers choose illicit market over bankruptcy

Cannabis marketing CEO Lisa Campbell says she expects more than half of the existing licensed producers and retailers will fold in a year, well before ISED's strategy table consultations conclude.

Nearly five years after legalization, Canada's cannabis industry is struggling with the burden of an excise tax based on an 'idealized' valuation by Health Canada, say advocates, forcing many businesses to choose between bankruptcy, selling government weed, or returning to the illicit market to turn a profit.The Hill Times file photograph

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BY STUART BENSON

April 5, 2023

While Canada’s alcohol producers found some relief for their excise tax woes in the recent federal budget, cannabis stakeholders say without greater support for their industry, the government will be “shooting itself in the foot” as half of the country's licensed produ...

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