Products containing CBD will be exempt ...
2019's Canadian federal budget proposes that edible cannabis, extracts and all new lines of products, which will be legal this fall, be taxed according to their level of THC.
A THC tax?
The oils, edible products (edibles) and cannabis concentrates will be taxed based on the amount of tetrahydrocannabinol rather than its weight, starting in May.
Since last October, cannabis oils are currently subject to a tax of 10% on each gram or its equivalence.
The government says the new rules are aimed at simplifying the way these taxes are calculated and alleviating compliance issues growers have encountered when it comes to cannabis oils. Taxes apply to medicinal and recreational products.
However, in its 2019 budget, the US government proposes that edible cannabis, cannabis extracts, and cannabis topicals, all of which are new product lines
to become legal this fall, be taxed according to their THC content.
The government is proposing a rate based on the THC of 1% per milligram of THC content.
Products containing cannabidiol (CBD) and traces of THC will be exempt from the tax. This could encourage producers to increase the variety of CBD products that will be released in October.
Cannabis tax revenues are currently shared between the federal government and the provinces or territories. The first receives 25% of revenue and the second 75%. The new THC-based tax rate will be split in the same ratio between the provinces and the federal government, according to the budget documents.
Currently, only cannabis-based pharmaceutical products that have an identification number are exempt from taxes.
Some licensed producers oppose that any type of cannabis product sold in the medical market should not be subject to tax. Edmonton-based licensed producer Aurora Cannabis Inc., for example, pays excise tax on behalf of its patients: a policy that the company says has cost more than $ 2 million in lost revenue over the three last months.
The federal budget on Tuesday appears to have slightly eased the tax burden on patients who have a medical cannabis prescription: they will now be eligible for a medical expense tax credit.
This tax phenomenon is no accident, it is also a fashion phenomenon ...
Jelly Belly inventor launches cannabis-infused version of Dragibus
David Klein, who invented Jelly Belly in 1976, recently launched a company called Spectrum Confections, which manufactures jelly candies infused with cannabidiol.
The candies are offered in 38 flavors, including roasted marshmallow, pina colada and strawberry cheesecake, and each grain contains 10 milligrams of CBD.
“Bean jelly is perfect for the right dosage,” says Klein.
The CBD-infused bean jelly candies are available in bulk on the Spectrum Confections website, although the candies sold out on Monday.
Klein has been involved in the candy industry since the 1970s, selling the Jelly Belly brand in 1980 to the candy maker Herman Goelitz Candy Co. which changed its name to Jelly Belly Candy Co.
ADJUSTMENTS OF TAXATION
With the sale of edible cannabis products about to become legal around the world, the federal government do not hesitate to invent all kinds of taxes. The duty on products containing little THC will not be changed for most other products including fresh or dried cannabis and seeds.