Canadians may be paying more for higher THC products if the government has it's way, read this https://cannabis.net/blog/news/should-you-pay-a-higher-cannabis-tax-for-higher-thc-content

1. 6/22/2020 Should You Pay a Higher Cannabis Tax for Higher THC Content?
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HIGHER TAXES ON THC GRADING
h ld i h bi f

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Should You Pay a Higher Cannabis Tax for
Higher THC Content?
Canada Is Going To Tax Edibles Based On THC – And You Might Be Getting Tasteless Edibles
Posted by:
DanaSmith on Sunday Mar 31, 2019
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Canada Is Going To Tax Edibles Based On THC – And You Might Be Getting Tasteless Edibles
The Liberal government of Canada (https://cannabis.net/blog/news/why-did-trudeau-pick-october-17th-for-recreational-
cannabis-to-be-legal-in-canada) has mandated a tax rate for edibles and topicals that will be based on its THC content,
for the 2019 budget which will take e ect May 1st.

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The recommendations are endorsed by the country’s cannabis task force. “Budget 2019 proposes that edible cannabis,
cannabis extracts (including cannabis oils) and cannabis topicals be subject to excise duties imposed on cannabis
licensees at a at rate applied on the quantity of total tetrahydrocannabinol (THC), the primary psychoactive compound
in cannabis, contained in a nal product,” states the budget.
In other words, the higher the THC content is of a product, the more taxes it will bear. This decision was made for easier
compliance by manufacturers of cannabis oils, though the taxes will be applicable to both recreational and medicinal
cannabis.
Currently, the excise tax for cannabis oils and dried cannabis ower, which were legalized last October 2018 for
recreational use, is capped at 10% per gram or a gram-equivalent; translating to $1 a gram whichever is more.

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However, products that contain cannabidiol (CBD), the other major constituent in the plant that doesn’t get you high,
are exempt from the excise tax. For this reason, most producers are focusing their business plans on CBD products for
the coming fall.
Not everyone is happy about this decision, clearly. Licensed producers maintain that cannabis products marketed to
medical patients shouldn’t be subject to excise taxes.
It’s in the best interest of Canadian cannabis edibles and oils producers to consult their lawyers so as to avoid any legal
issues later on. “Cannabis oils are treated slightly di erently under the current regime, where the at-rate tax is based
on the amount of cannabis material used in the production process,” explains Whitney Abrams
(https://canadianlawyermag.com/legalfeeds/author/anita-balakrishnan/budget-2019-clears-the-air-on-cannabis-taxes-
17046/), associate at Toronto’s Minden Gross LLP. “Lawyers who are advising licensed producers or anyone looking to
get into the cannabis edible, topical or extract market, once available, should be aware of these changes and know hwo
to advise their clients accordingly on this aspect,” she tells Legal Feeds in an email.
Canadian Edibles Industry May Have Questionable Taste
Aside from potentially high taxes depending on its THC content, there are also concerns that when edibles hit shelves of
Canada’s licensed retailers by fall, that they might not even taste good.
By October 17, 2019, edibles will nally be legal in Canada although infused-goods producers are facing serious
obstacles. Even if the Canadian government has already given them the green light for making space cakes and other
edibles, they aren’t able to let possible customers do a taste test. In order to do this, edible producers need to get a
speci c research license from the government prior to letting customers come in and do a taste test.
Experts say that the application for getting one license can take as long as four months, while many other companies
are still waiting for feedback.
“People are certainly interested in doing tast testing, but the research licenses to do so haven’t been issued yet,” said
Brenna Boonstra, Director of Quality and Regulatory at Cannabis Compliance Inc, to CTV News.
(https://www.ctvnews.ca/business/edibles-legalization-fraught-with-hurdles-lack-of-clarity-companies-say-1.4339669)

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Though this doesn’t necessarily mean that all edibles to hit the shelves by October will taste disgusting. There are a
handful of companies that have succeeded with getting people to sample their goods prior to launching.
“It’s a challenge. Everyone is running for the October deadline, and we’re trying to develop multiple products at the
same time. The more certainty you have, the easier it is to innovate products,” said Je Zietlow of CannTrust Holdings
Inc (http://www.digitaljournal.com/business/companies-claim-cannabis-edibles-legislation-has-
problems/article/545590).
BDS Analytics estimates that the edibles market in the United States in Canada will be worth $1.4 billion by 2022, but
Canada still needs to iron out many issues with regards to their supply as well as edibles regulations.
Until October, Canadians can legally make their own infused food and beverages at home but it’s still illegal for people
to buy or sell them. Canadians also shouldn’t expect to get any potent edibles once available, because the proposed
federal regulations (http://www.gazette.gc.ca/rp-pr/p1/2018/2018-12-22/html/reg4-eng.html) will limit one serving of
edibles to 10mg of THC.
OTHER STORIES YOU MAY ENJOY...
(https://cannabis.net/blog/news/could-californias-pot-taxes-reach-45)
COULD CANNABIS TAXES GO TO 45%, CLICK HERE. (https://cannabis.net/blog/news/could-californias-pot-taxes-reach-
45)

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OR..
(https://cannabis.net/blog/news/should-tax-revenues-go-to-towns-that-
ban-dispensaries)
SHOULD TAX REVENUE GO TO TOWNS THAT BAN DISPENSARISE, CLICK HERE.
(https://cannabis.net/blog/news/should-tax-revenues-go-to-towns-that-ban-dispensaries)
OR..
(https://cannabis.net/blog/opinion/the-marijuana-taxation-problem)
THE MARIJUANA TAXATION PROBLEM, CLICK HERE. (https://cannabis.net/blog/opinion/the-marijuana-taxation-
problem)
What did you think?

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(https://cannabis.net/blog/opinion/how-di cult-is-it-to-stop-smoking-weed-one-week-experiment-results)
(https://cannabis.net/blog/strains/the-evolution-of-auto ower-cannabis-seeds) (https://cannabis.net/blog/medical/cannabis-for-bladder-cancer)
FEATURED

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OPINION
How Dif cult is it to Stop Smoking Weed? (One Week Experiment Results)

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I stop smoking weed at least four times a year to reset my tolerance levels. As with every other time, the rst day is literally the “worst of it” – and by that I mean
not a problem at all. Despite me smoking a lot of weed on the regular, I simply don’t feel the blunt of the withdrawal symptoms listed by the DSM-5. Perhaps, I feel
a slight anxiety and irritability, but these are all within manageable parameters. I know that I don’t “need cannabis” every day, I do know that it is a dietary…

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STRAINS

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The Evolution of Auto ower Cannabis Seeds
It is now known that the best auto genetics tend to produce a greater yield compared to photoperiod varieties, which are grown over a similar period of time.

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MEDICAL