Cannabis Council of Canada Urges Policy Reforms Following Carney’s Election Victory

LOS ANGELES- The Cannabis Council of Canada has extended congratulations to Prime Minister Mark Carney on his recent election victory, while simultaneously calling for immediate policy reforms to support the nation’s legal cannabis industry. ​

Since the legalization of cannabis in 2018, the industry has contributed over CAD $43 billion to Canada’s gross domestic product, including approximately $7.4 billion in 2024 alone. Despite this economic impact, the Council asserts that the federal government has not provided adequate support to the sector.​

A primary concern highlighted by the Council is the current excise tax framework. Originally established when cannabis was priced at around $10 per gram, the tax imposes the greater of 10% of the product’s value or $1 per gram. With current market prices dropping to as low as $3 per gram, this has resulted in an effective tax rate exceeding 30%, placing financial strain on licensed producers. ​

The Council recommends eliminating the $1 per gram minimum tax and adopting a uniform 10% ad valorem rate, as proposed by the House of Commons Standing Committee on Finance in 2024.

Another issue raised is the prevalence of the illicit cannabis market, which is estimated to account for 25% to 40% of total sales in Canada. The Council urges the government to implement measures to combat illegal production and distribution, including public awareness campaigns and stricter enforcement. ​

Additionally, the Council advocates for the introduction of a single national excise stamp to replace the current system requiring unique stamps for each province and territory. This change aims to reduce regulatory complexity and associated costs for legal producers. ​

Organigram Global Inc., a leading cannabis company in Canada, echoed these sentiments, emphasizing the need for tax reform and the elimination of interprovincial trade barriers. The company also called for the development of a national cannabis export strategy to capitalize on the estimated CAD $140 billion global market. ​

As Prime Minister Carney’s government begins its term, stakeholders in the cannabis industry are seeking prompt action to address these concerns and support the sector’s growth