Feds propose legal weed tax of at least $1 per gram

If you plan to buy legal marijuana next year get ready to be taxed

Anyone planning to purchase legal marijuana next year better be prepared to pay the taxman as well, to the tune of at least $1 for every gram — plus GST.

The proposed federal tax scheme, announced today, will be available for public comment until Dec. 7 as Canada prepares to legalize the drug by next summer.

RELATED: John Horgan blasts Ottawa’s marijuana tax grab

The plan would add an excise tax of $1 per gram or 10 per cent of the final retail price, whichever is higher, with the revenues to be divided equally between Ottawa and the provinces.

GST will be also be applied, so if the retail price of a single gram of pot is $8, consumers would pay a $1 excise tax and $1.17 in GST for a total of $10.17.

The taxes would be levied on both on fresh and dried marijuana, pot-infused oils and seeds and seedlings used for home cultivation.

RELATED: Five Things to consider about the Liberal government’s plan to legalize pot

The 50-50 tax revenue split idea has already rankled some premiers who say their governments have to do the bulk of the heavy lifting on legalization, including policing, distributing and regulating the sale of marijuana.

RELATED: Province, Feds see lots of work ahead of marijuana legalization

The Canadian Press

Just Posted

Federal candidates talk most pressing issues in Revelstoke

Concerns include jobs, logging, climate change, affordable housing, Highway 1

Kootenay-Columbia riding candidates have Canada’s highest expense limit

Facebook data also shows who is buying ads on the social media website

Revelstoke roads and weather: avalanche control planned

Expect 20 min road closures west of Revelstoke on Oct. 21

Competition shakes up for the Okanagan Mixoff

The Okanagan Mixoff takes place Nov. 7 in Kelowna

Fatal overdoses down by 33% in B.C., but carfentanil deaths continue to spike

Carfentanil, an illicit drug more powerful than fentanyl, causing more deaths than ever

South Okanagan dangerous offender guilty plea struck down

Trial delayed again because Ronald Teneycke failed to elect his choice of trial

Six bears destroyed in three days in West Kelowna

A West Kelowna business has been charged for leaving garbage around Lake Okanagan Resort

Police standoff ends peacefully in West Kelowna

A distraught man was taken into custody Wednesday afternoon

A year after pot legalization in Canada, it’s a slow roll

It’s one year into Canada’s experiment in legal marijuana, and hundreds of legal pot shops have opened

ELECTION 2019: Climate strikes push environment to top of mind for federal leaders

Black Press Media presents a three-part series on three big election issues

Most Read