Cannabis Council of Canada applauds new federal budget
April 11, 2022 By Grow Opportunity staff
Canada’s 2022 federal budget, released on April 7, includes several references to the cannabis industry – especially as it relates to simplifying cannabis taxes and helping the continued evolution of the industry – that have drawn praise from the Cannabis Council of Canada.
Budget 2022 proposes to allow licensed cannabis producers to remit excise duties on a quarterly rather than monthly basis, starting from the quarter that began on April 1, 2022. This option will only be available in respect of a fiscal quarter, beginning on or after April 1, 2022, of a licensee that was required to remit less than a total of $1 million in excise duties during the four fiscal quarters immediately preceding that fiscal quarter.
Also, the new budget proposes to allow the CRA to approve certain contract-for-service arrangements between two licensed cannabis producers. These approved arrangements will permit two licensed producers to transfer stamps, and packaged but unstamped products, between them; stamp and enter cannabis products into the retail market that have been packaged by the other producer; and pay the excise duty on cannabis products that were stamped by the other producer.
“[The] budget recognizes the scale and impact of Canada’s cannabis sector,” said George Smitherman, CCC’s president and CEO. “The amendments to the Cannabis Excise Duty Framework are both technical and consequential for many Licence Holders and the promised launch of a cannabis industry strategy table at ISED is a means for our sector to contribute more to the public health, social and economic goals for Canada.” The proposed changes to the Excise Tax Framework will strengthen the cannabis industry’s efforts to build a sustainable supply chain and provide more value to the medical and adult-use cannabis consumer, Smitherman added.
The budget also proposes what it calls a new “cannabis strategy table” to liaise with legal cannabis industry businesses, and the CCC offered approval of this as well. “[The strategy] that will support an ongoing dialogue with businesses and stakeholders in the cannabis sector is another positive development for Canada’s nascent cannabis sector,” CCC said. “[Our] ‘Not Done Yet Report Card’ on cannabis legalization signaled the need for government programs and services tailored to the unique needs and opportunities of Canada’s cannabis industry. With the right mix of government supports and understanding, Canada will be the world leader in legal cannabis, creating jobs and opportunities for people in communities across Canada.”
The Canadian Chamber of Commerce also gave its approval of the new cannabis strategy table. “The proposal…is something the National Cannabis Working Group put in its pre-budget submission and has been advocated for by the entire cannabis sector,” said Jarred Cohen, a policy advisor with the Canadian Chamber of Commerce. “We are pleased to see this in the budget and look forward to government/industry collaboration in building a sustainable legal cannabis industry.”
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