Ottawa to recover $ 553 million to legalize cannabis

in legalizecannabis •  6 years ago 


OTTAWA | The federal government wants to recover the $ 553 million it will cost to legalize cannabis over the next five years. To do so, it proposes to impose annual fees of up to $ 1.16 billion on companies that produce the drug.

According to a document released by Ottawa on Thursday, which will now be subject to a 30-day consultation with Canadians, the government proposes to charge annual security screening, application review and regulatory fees to producers of all sizes.

The proposed fees would range from $ 9100 for micro-generators to $ 92,437 for large companies at the time of their initial license application. Both would then have to pay annual permanent fees of $ 5992 to $ 1.16 million respectively to retain their licenses, if the proposal goes through as is.

For large companies, which will reap $ 50 million in revenue per year, the government estimates, this amounts to a 2.3% royalty. Microcomputers will pay the equivalent of 1% of their revenues if the government's proposal remains unchanged.

"Last year, the Canadian government ... committed to recovering the full costs of regulating the new cannabis industry. As a result, those who benefit from the new legal market will bear the cost of regulation, which will reduce the financial burden on Canadians, "Health Canada said in a news release.

In total, the government estimates that it will have to spend $ 553 million over five years to put in place all the legislative, bureaucratic and regulatory measures as soon as cannabis is legalized on October 17.

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