The center of many conversations ever since Trudeau was voted as Prime Minister has been the legalization of marijuana. This last Friday, Ottawa proposed a legal weed tax of at least a dollar per gram sold, if not more. The other possibility is a 10% of the final retail price, and whichever yields more money will be chosen.
Federal and provincial sales taxes would be applied on top of the excise tax, with the final price tag varying across the country because provinces have different sales taxes. Many sources have decided to do calculations for examples of how much a gram of weed would end up costing. For example, on an $8 gram of pot sold in Ontario, the final purchase price would be $10.17, with a $1 excise tax and $1.17 HST. Bill Blair, Liberal MP, announced this news to the public saying, “I’m very comfortable that the level of taxation that has been determined as appropriate in this case achieves our goals of keeping the price sufficiently low to be competitive with an illicit market, while at the same time not creating an incentive for the consumption and purchase of this drug.” Blair also stated to the public that “the market is currently controlled by almost 100 criminals.”
Provinces had already been on edge with different opinions once Trudeau announced his plan to legalize marijuana, but this proposition by Ottawa has brought even more stirring to the pot. The idea that is receiving the most scrutiny is that Ottawa is planning to split the tax revenue 50-50 between their city and the rest of the provinces. With this detail, a vast majority of the provinces are disagreeing with the tax that Ottawa wants to enforce, saying that they all feel that the rest of the provinces should receive a larger cut of the tax revenue, which is estimated to be 1 billion dollars.
One billion dollars. That is a very large amount of projected money being earned solely from the sale of weed once it is legalized. From a personal standpoint, I do not have an opinion for consumers who will actually be looking to purchase marijuana, but I think that it is quite unfair that Ottawa keeps half a billion dollars while the rest is put up for sharing for the rest of the country. Many provinces could use this extra tax revenue to address current existing issues. A dollar per gram or 10% of a final retail is a ridiculous amount of tax that is being paid, so I feel that Ottawa can even things out by spreading more tax revenue to the rest of the provinces.
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References:
http://www.cbc.ca/news/politics/cities-marijuana-revenue-1.4395422