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New Tax Proposal on Legal Marijuana May Be Too High

The tax outline for legalized marijuana has been released from the federal government on purchasing legal pot next year.

The plan is to add $1 per gram tax and a 1.17 in GST, brining the total, if sold at $8 a gram, to $10.17.

Revenue generated from the tax will be divided equally between the government, territories and provinces.

STOCK photo of cannabis | Courtesy of Pixabay.com

Former Solicitor General Mike Morris says this might not be enough to stop people from illegally purchasing pot.

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“The tax structure needs to be such that it won’t encourage continued black market sales of marijuana.”

It may deter people from purchasing marijuana legally adds Morris

“You can get marijuana fairly cheap. It’s grown all over the place, so I think we really have to be mindful of that when a rate is set.”

Morris thinks the tax rate is to high, and doesn’t leave enough room for the province to garner the cost of both administration and law enforcement.

Public will have a chance to add their input on the new proposal until December 7th.

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