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.
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