VICTORIA, B.C. — Finance Minister Carole James announced yesterday that federal government and the provinces have reached an agreement that will see provinces getting 75 percent of cannabis-specific tax revenue, while the federal government will receive the remaining 25 percent.
The federal government has also agreed to a $100-million cap on its share of the tax revenue, meaning any revenue collected by the federal government above the $100-million cap would be returned to the provinces.
“This agreement is a win for our province as we made a very clear case that British Columbians will bear the majority of costs when cannabis is legalized,” said James. “We negotiated an agreement for B.C. that means the majority of cannabis revenue will flow to the provinces so we can invest in programs to keep people safe and remove the criminal element from cannabis.”
The proposed cannabis-specific tax will not exceed $1 per gram or 10 percent of the final producer’s selling price, whichever is higher. The tax will be applied upstream as an excise tax, similar to the federal excise taxes on other controlled substances, such as liquor and tobacco.
The Province will use this revenue to ensure cannabis regulation in British Columbia protects children and youth, prioritizes health and wellness, educates drivers, keeps the criminal element out of cannabis and ensures consumers get a safe product.