 The Cannabis Council of Canada has called on the federal government to provide “immediate financial relief” for the legal cannabis industry and end the “stigmatization” of legal cannabis that allegedly limits progress on the key public health aims of legalization.
In response to a review of Canada’s Cannabis Act, the Cannabis Council urged federal and provincial governments to address the “unpredictably aggressive” excise tax and provincial distributor mark-ups and implement a moratorium on regulatory fees imposed by Health Canada. The council’s CEO and president George Smitherman said that the current cannabis legislation in their country has inadvertently “contributed to re-stigmatization,” along with often doing the opposite of it’s plan to “eliminating the illicit market.” The council says that the current regulatory framework has been “a financial success” for the local and federal governments, as well as the provincial distributor monopolies who apply huge mark-ups. But they also point out this has equated to a financial “bloodbath” for producers and processors. The extensive regulations and extremely high taxes have contributed to licensed cannabis businesses facing “crisis” level competition from the “unbridled” illicit market, which doesn’t face the same rules and taxes. The Cannabis Council of Canada recommended 37 measures designed to help with these issues. Some of those regulations include the following: • Revise cannabis taxation, mark-ups, and fees so that legal businesses can remain financially sustainable, while also being a financially competitive with the illicit market. • Increase consumer-focused information about cannabis products. • Enforce laws regarding the ban of illicit cannabis business utilizing the internet. • Allow cannabis companies to build brands to help attract customers away from the illicit market, and into the legal one. (Currently all Canadian cannabis is sold as “white label”, without branding). • Increase the current limit of 10 mg of THC for cannabis edibles to compete with the illegal edibles, as well as protect children from “copycat illegal edibles mimicking candy”. • Allowing patients to access “untaxed” medical cannabis in pharmacy settings. The Cannabis Council of Canada’s CEO and president George Smitherman said, “… it is incumbent upon the Government of Canada to acknowledge the financial crisis facing Health Canada licensed producers and processors and to make immediate changes that will create a sustainable environment for Canada’s legal cannabis industry. We cannot wait for the outcome of the legislative review process for action from the governments.” Source: https://www.canadianlawyermag.com/news/general/cannabis-council-of-canada-calls-for-immediate-financial-relief-for-legal-cannabis-industry/372013 Comments are closed.
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