ollapse of the legal pot trade has seen two thirds of marijuana dealers fall behind in tax payments, says a federal report. Dealers owe the Canada Revenue Agency millions.
“The total amount of unpaid cannabis excise duties has continuously been rising since legalization,” said a report by the Competition Bureau. “Sixty-six percent of licensees required to remit excise duties had an outstanding debt with the Canada Revenue Agency.”
Unpaid taxes last year totaled $52.4 million. The value of delinquent payments was projected to nearly double to $97.5 million this year, said the report Planting The Seeds For Competition.
Parliament on legalizing marijuana in 2018 taxed it at $1 per gram plus GST. “With the average price per gram for dried cannabis falling since legalization, excise duties now take up a more significant portion of cannabis producers’ revenues,” up to 30 percent or more, wrote the Competition Bureau