Canada’s Liberal government has included a THC-based tax rate for edibles and topical products in its 2019 budget, which are set to be allowed for sale in the state’s recreational market on or before Oct. 17, Investing News reports.
The plan is based on recommendations from the nation’s cannabis task force.
“Budget 2019 proposes that edible cannabis, cannabis extracts (including cannabis oils) and cannabis topicals be subject to excise duties imposed on cannabis licensees at a flat rate applied on the quantity of total tetrahydrocannabinol (THC), the primary psychoactive compound in cannabis, contained in a final product.” – Canadian federal budget
Avtar Dhillon, president and executive chairman of Emerald Health Therapeutics, said the revised taxation structure could lead to reduced taxes on low-THC products and those derived from hemp.
“We expect that this proposed revision to the excise tax calculation will enhance our opportunity to utilize our purchased hemp in an economically viable way as feedstock for new cannabinoid-containing ingestible products.” — Dhillon, in a press release
The changes are expected to take place on May 1. The changes would not have an impact on the current taxes for flower, seeds, and seedlings sold in Canada.
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