CA - Unpaid cannabis taxes pile up at Canadian Licensed Producers

2023-05-25 14:12:23 ET

Canada’s licensed cannabis producers have C$192.7M ($145M) as unpaid federal excise taxes for the fiscal year ending March 31, a rise of over threefold from the 2021-22 fiscal year, according to the industry publication Marijuana Business Daily.

Canada’s excise duty on dried cannabis stands at CA$1 per gram or 10% of the value of the gram, whichever is greater. For the 2021 - 2022 fiscal year, Canadian LPs owed C$52.4M to the Canada Revenue Agency.

The number of companies with unpaid excise debt is also rising. As of March 31, 2023, 213 LPs, or about 70% of the 305 licensees, were required to pay taxes, up from 141 and 68 as of March 2022 and 2021, respectively.

“This massive and accelerated growth of total excise owing as well as total number of (licensed producers) in arrears is indicative of a sector- wide inability to survive under current excise tax policy,” MJBizDaily reported quoting Dan Sutton, CEO of Canadian cannabis producer Tantalus Labs.

Canadian LPs: Canopy Growth ( NASDAQ: CGC ), Tilray ( NASDAQ: TLRY ), Cronos ( NASDAQ: CRON ), Aurora Cannabis ( ACB ), Sundial Growers ( NASDAQ: SNDL ), OrganiGram Holdings ( OGI ), HEXO Corp ( HEXO )

More on Canadian LPs

• Canopy Growth files revised SEC proxy statement on US market entry
• Canopy Growth: The Cannabis Industry Is Sinking
• Tilray Is Likely To Fall More

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