Consultations on Proposed Excise Duty Framework for Cannabis Products

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The Department of Finance Canada has published for consultation a proposed excise duty framework for cannabis products. The proposed level of taxation is intended to keep prices low to eliminate the black market. The proposed duty would apply to all cannabis products available for legal sale, including fresh and dried cannabis, cannabis oils, and seeds and seedlings for home cultivation.

Under the proposed Cannabis Act, it will be illegal to import into or export from Canada cannabis and cannabis products except under very specific circumstances. Import and export of cannabis or cannabis products for medical and scientific purposes will continue to be allowed with the proper permits issued by the Government. In addition, industrial hemp will be allowed to be imported and exported.

The proposed legislative framework will require all Health Canada-licensed cultivators and manufacturers of cannabis and cannabis products to obtain a cannabis licence from the CRA. Health Canada-licensed cultivators and product manufacturers will be required to obtain a cannabis licence from the CRA for reporting liability purposes, regardless of whether they have a duty liability.

Interested individuals or organizations are invited to review the consultation document, the draft legislative and regulatory proposals, and the related explanatory notes at the links below.

Canadian stakeholders, businesses and the public are invited to submit feedback as part of the Government of Canada’s consultation on the cannabis duty framework on or before December 7, 2017. The federal framework is intended to be in place once legal cannabis for non-medical purposes becomes accessible for retail sale, no later than July 2018.

Written comments should be forwarded by December 7, 2017 to fin.cannabis-taxation-cannabis.fin@canada.ca.

View the Consultation on the proposed framework for more details.