British Columbia to apply 20% tax on cannabis vape items


(This story has been updated to reflect a statement from the Cannabis Council of Canada.)

British Columbia’s strategy to slap a 20% tax on retail sales of cannabis vaporizer products imperils the achievement of legalization, a marijuana sector group mentioned.

The province’s proposed boost to its sales tax is intended to restrict vapor item access, flavors, nicotine content material, packaging and marketing, the province announced.

Nonetheless, B.C.’s move would make legal cannabis items much less competitive than these sold in the illicit marketplace, maintaining sales away from the watchful eyes of overall health regulators, specialists warn.

The Cannabis Council of Canada, an sector physique representing federally regulated marijuana producers, released a statement criticizing the measure, saying it would only serve to strengthen British Columbia’s thriving illicit marketplace for cannabis.

“We strongly urge the B.C. government to reconsider their PST price boost,” Cannabis Council Chair Megan McCrae wrote.

“Dramatically escalating taxes on vape items will permit the black marketplace to continue to flourish with its low rates and reduce solutions for regulated and trustworthy items from licensed producers.”

Vice Chair Cameron Bishop said the overregulation and overtaxation of legal cannabis has to cease.

“It is imperiling the achievement of legalization,” he mentioned.

Dried cannabis, extracts not for use in a vaping device, edibles and topical marijuana items will be topic to the normal 7% provincial sales tax.

The 20% tax will apply to all vape items, which includes:

  • Vaping devices.
  • Cartridges, components and accessories.
  • Vaping substances.

The B.C. government says it will introduce legislation to boost the sales tax this month.

The new price will take impact Jan. 1, 2020, pending a public comment period and legislative approval.

Edibles, extracts and topical cannabis items are anticipated to trickle into retailers across Canada at the finish of this year, with wider distribution not anticipated till 2020.

Martin Landry, an analyst for Montreal-primarily based GMP Securities, expects vape pens to at some point take up 20% of extracts sales followed by edibles (15%), beverages (10%) and other items (five%).

Matt Lamers is Marijuana Organization Daily’s international editor, primarily based close to Toronto, Ontario. He can be reached at [email protected]


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