Indopedia All Things Marijuana
Provincial and territorial finance ministers met for a second time Monday to negotiate how revenue from legal marijuana will be shared. Although the marijuana meeting did not have high hopes for a resolution anytime soon, a surprising deal was struck as the feds offered a generous 70 percent (70 cents on every dollar).
On Nov. 10, the federal government announced a proposal to tax legal cannabis at $1 per gram, with all revenue split 50-50 between the provinces and the feds. This declaration quickly prompted opposition from provinces and municipalities that claim they should receive the lion’s share of the money. Their reasoning stems from the knowledge that local and provincial governments are doing most of the heavy lifting regarding the logistics of legalization. These tasks include training law enforcement, constructing retail outlets, and various other regulatory and oversight expenses.
Although the provinces and municipalities have been publicly griping about the tax revenue split for some time now, the various finance ministers have been “cautiously optimistic” about reaching a satisfactory deal after heavy negotiation this month.
Meanwhile, at the…
