Cannabis producers say 'crushing' taxes, fees have made legal industry 'uneconomic'

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Producers want the Liberal government to eliminate a 2.3 per cent regulatory fee which alcohol and tobacco industries don\u0027t have to pay.

George Smitherman, president of the Cannabis Council and former deputy premier of Ontario, pointed to the Canopy Growth cuts and the layoffs announced Tuesday by SNDL of 85 people in Olds, Alta., as the “consequences of an administration of fees and taxes, which makes our industry largely unsustainable.”

Smitherman said the federal budget is a chance “to send a message about its commitment to the sustainability of our sector.” The federal government would need to work with provinces and territories to reform the excise tax, but could eliminate the regulatory fee on its own, he said.Article content But four years after cannabis was legalized, the illegal market is still thriving in Canada. The current rules make it very difficult for legacy producers to move into the legal market, the National Post reported in October. Smitherman told reporters that at this point, “we’ve only captured about half of all of the cannabis marketplace in Canada in the legal realm.”Article content

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No tax on illegal weed..

Please grow outdoor cannabis even if you don't smoke it. Give it all away. Help shut down indoor grow ops from sucking massive amount of electricity and take up indoor space. Peace & love🌳

They created a legal industry with regulations alongside an illegal industry with none. Who did you think was going to win?

This was the push from federal Liberals toplease Canadians or was it to tax Canadians. What’s the Liberal way help or tax?

Wow, you mean excessive taxes help create and maintain a black market? Who could have guessed that?

Should have let the potheads run it from the beginning. Empty suits ran it into the ground!

Shocking. Didn’t see that coming at all. Lol

Lol. They will never win. Black market is better. Always will be. Greenhouse weed sucks. Nowhere the same. but good luck companies. Try lowering your prices to next to nothing for you watered down bunk weed

Whomp. Grow at home indoors is a thing I’m sure for some people

Trudeau promised to control, regulate, and tax the cannabis market and in doing so get rid of the illegal pot growers. Well it turns out after all that regulation and taxation the cannabis market can’t survive, and we never stopped the illegal market. What a complete screw up.

Start with the excise tax. It's $1 per gram, on tobacco its $0.16. How the hell is that fair

🤣🤣🤣🤣

Everything Government Touches...dies.

🤣 Careful what you ask for… cause sometimes you get exactly what you deserve. I hear Crypto has almost zero overhead.

Here's a loud & lusty 'I TOLD YOU SO' to Trudeau, and the fools believing he would ensure outlets prospered flogging it. And here's a souvenir picture of the worlds largest cannabis greenhouse built that NEVER GREW A PLANT. It proved a harbinger of Trudeau's governing acumen.

No shit… 😂😂😂😂 fail

Good. Time to get rid of them. It was a terrible policy to begin with.

😂 what? A tax is the solution to everything, like the carbon tax will fix climate, I’m shocked a dope tax isn’t fixing the illegal dope trade? Shocked.

Looks good on politicians that tried to make corporations millions instead of empowering the people from the black market!

Well still hasn't helped the people that have an allergic reaction to it or the children that don't have a choice to smell it or be in the same room. Made it worse.

It’s like the government wrecks everything it touches or something…

Serves them right. Name one thing Trudeau does that doesn’t screw over Canadians? He’s an incompetent clown.

I thought smoking is bad for your health 🤫🤫🤫

If that’s the case why are there literally 10 cannabis stores all within a city block near me and all over

Imagine if every grocery item had this kind of scrutiny? So many business rushed to open to find out how difficult it was to start a business with covered windows and no ability to advertise? Now some of them have failed and it’s sad. I feel for these folks

😂😂😂😂😂😂😂

They got what they voted for.

Trudeau giving birth to an industry that then dies before it is 10 years old is expected.

Duh, we knew this years ago

Welcome to Canada. Liberals are determined to kill every industry while enriching their friends and families.

What, they want to be treated differently

Wait, didn’t they say that legalizing would bring in so much money and get rid of the black market trade. Oh well. At least they can turn to heroin and crack to sell as an incentive now

You know you know nothing about finance or business when you cant even make drug dealing profitable. Great job liberals.

Yet another failure in Trudeau's long list of failures.

This industry was always eventually going to wind up being run by Big Tobacco. Remember when VCR's first became a thing and every Tom Dick and Harry had a video store? Then Rogers and Blockbuster came along and crushed them. Same thing will happen to the pot dispensaries.

rightwing media never misses an opportunity to push the classic 'taxes bad' BS cannabis producers are failing because they greatly overestimated the amount of people who smoke weed, period

Predictable for sure and we all know why 😂

My dealer sells an ounce for 80. Better than the 80 trash at dispensary. Truth hurts huh

Hurray the underground is flourishing

Cannabis producers say crushing executive bonuses and shareholder dividends have made legal industry ‘uneconomic’ What the fuck did these investors think was going to happen?

Shocking that an industry under government control, is uneconomical.

Leave it to the government to tax it to death. It fails then back to illegal sales, no taxes at all. 🤦‍♂️

Government ruins everything. Nothing crushes a free market faster than a controlling and greed filled Government.

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