A: BC's Direct Delivery program allows small cannabis producers to sell and deliver their products directly to licensed retailers. However, these producers still have to pay a 15% wholesale mark-up to the LDB as a "Proprietary Fee, which we think is unfair.
A: The BCLDB’s 15% “Proprietary Fee” was introduced along with the Direct Delivery program and, in our opinion, is charged in lieu of the BCLDB’s standard 15% wholesale mark-up. As a result, small growers are allowed to perform the work of a wholesaler but but must continue to pay the 15% wholesale mark-up back to the BCLDB in the form of a “Proprietary Fee”.
A: The current excise tax structure for recreational cannabis in Canada (2024) requires licensed producers to pay the higher of a flat-rate duty or an ad valorem duty. For dried or fresh cannabis, the tax is CA$1 per gram or 10% of the product's wholesale price, whichever is greater. For edible cannabis, extracts, and topicals, the tax is $0.0025 per milligram of total THC.
A: The federal House of Commons Standing Committee on Finance is recommending a change to how cannabis excise taxes are applied. The change calls for moving from a rate of $1 per gram or 10% of a producer’s selling price (whichever is higher) to a 10% ad valorem rate.
A: As the global cannabis industry continues to open up, policy makers around the world will be looking to the Canadian market as an example of successful policy or failed policy. Our best producers, processors, and retailers struggling to make ends meet means is a clear indication of failed policy. If regulations don't improve, Canada will lose its leadership position within the emerging global cannabis industry.
Another important consideration is available tax revenue. Excise tax isn't collected on products that are exported to other countries and the export market is now offering better prices than the Canadian market. If policy makers continue to insist on high excise taxes, they may lose access to that tax base sooner than expected.
A: Many of BC's best growers are now finding their best offers outside the Canadian market. As much as they want to supply BC retailers, excise tax and the BCLDB's 15% "Proprietary Fee" mean less money to the growers than they would get selling to their product internationally. If BC's best growers continue to struggle financially, it's fair to assume that they will begin to focus on the international market with fewer and fewer of their products available to local retailers.
A: BC's reputation for cannabis is one that's known around the world. It's taken generations, but we've built something truly special that the culture and the community really seem to value. Where we go from here will largely be decided by policy makers as they indirectly decide which types of businesses will survive. If they want to support an industry of small-batch growers who will continue to build the province's reputation for world class cannabis, this is their opportunity.
Where does your weed money go?
FAQ
DEALR
DABBLE CANNABIS CO.
VICTORIA CANNABIS CO.
WOODY NELSON
BOOK CLUB
BRINDLE FARMS
CREATIVE EARTH
NEWLINE VENTURES INC.
PISTOL & PARIS
PUREFIRE CANNABIS
SMOKER FARMS
SMYLE BRANDS
SWEETGRASS CANNABIS
EARTHWOLF FARMS
KOOTENAY CULTIVAR
WILDCARD EXTRACTS
AMANI CRAFT CANNABIS
TERROIR CRAFT FARMS
KOOTENAYS FINEST
COAST MOUNTAIN CANNABIS
ROSEBUD CANNABIS FARMS
QUARTZ CREEK CANNABIS
GREAT GARDENER FARMS
DYCAR PHARMACEUTICALS
VILLAGE BLOOMERY
CONTACT
WHO WE REPRESENT
Our Mission
BC is now home to some of Canada's favourite cannabis brands but excessive taxation means our best growers, processors, and retailers are struggling to get by.
Between taxes, fees, and mark-ups, the government often takes the most while contributing the least. For BC's most popular products, that take can be more than half.
We're here to rally support for simple changes while helping policy makers create a more sustainable cannabis industry.
The federal cannabis review has called for an update on the tax structure and the federal House of Commons Standing Committee on Finance is recommending a change to how cannabis excise tax is applied. We support these changes but it's important that they're prioritized and implemented quickly.
BC's Direct Delivery program allows small producers to sell and deliver product directly to licensed retailers. Unfortunately, they still have to pay their 15% wholesale mark-up to the LDB as a "Proprietary Fee". That's not cool.