Canadian Government Pockets Nearly Half of Legal Cannabis Revenue

A recent report from Statistics Canada revealed that the Canadian government is reaping a significant portion of the revenue generated from legal cannabis sales. According to the figures shared on April 19, two out of every five dollars spent on legal cannabis in Canada from 2022-2023 went directly to government coffers.

The federal and provincial governments collectively received a staggering $1.9 billion from cannabis sales in the most recent fiscal year, marking a nearly 25% increase from the previous year. This revenue is generated through various fees and taxes, including the $1 per gram excise tax applied to cannabis sold into provincial markets. 75% of this tax is given to the provinces where the products are sold. 

Additionally, provinces impose their own taxes and fees on cannabis, and many also manage cannabis distribution and/or sales, further contributing to the government’s revenue stream.

The report also highlights that fewer than 10% of adults in Canada consume cannabis on a regular basis. Canadians under the age of 45 are more likely to consume cannabis compared to those who are younger, with about one-third of adults aged 18 to 44 reporting cannabis use in the past 12 months.

The majority of cannabis sales continue to be dried cannabis flower, accounting for approximately 65% of the $4.7 billion in sales in the 2022-2023 fiscal year. However, cannabis extracts saw the most significant growth, with a 59% increase in sales within the category compared to the previous year.


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

When 4% of Global Copper Disappears Overnight | David Gower – Emerita Resources

Mining M&A: Gold X2 Acquires Kesselrun Resources

They Said Oil Was Dead. They Were Wrong. | Michael Judson – Record Resources

Recommended

Military Seizes Power in Madagascar After President Flees

Altamira Gold Hits 395.5 Metres Of 0.4 g/t Gold At Maria Bonita

Related News

Canada’s Trade Surplus Widens to $1.94B in August as Energy Exports Surge

Canada’s trade balance remained in a surplus position for the third consecutive month, widening from...

Wednesday, October 6, 2021, 04:35:00 PM

Canada’s Economy Stalls as Supply Constraints Weigh on Growth

Canada’s economy fared worse than expected in August and remained little changed in September, as...

Friday, October 29, 2021, 03:33:00 PM

Rising Rates Globally Set To Hit Spain, Australia, Canada The Hardest

Many corners of the financial and investing world are grappling with challenges that were not...

Saturday, September 17, 2022, 09:00:00 AM

Continued Low Employment Levels Suggest Canada’s Job Recovery has Slowed Down

Despite the Canadian economy reopening alongside the lifting of various restrictions, it appears the job...

Friday, July 10, 2020, 11:30:00 AM

Federal Government Plans to Mandate EV Sales in 2026

Pretty soon, all vehicles sold in Canada will need to be electric. In a series...

Thursday, December 22, 2022, 06:25:00 AM