Cannabis Executives Complain Over Lack of Tax Reform in Canadian Budget… While Making Bank

Top executives from leading cannabis companies in Canada have voiced their dissatisfaction with the absence of proposed tax reforms in the federal budget, despite their thriving personal financial performance in recent fiscal years.

The CEOs of Tilray Brands (TSX: TLRY), Village Farms International Inc. (TSX: VFF), and Canopy Growth Corp. (TSX: WEED) have all lamented the government’s failure to address what they perceive as a flawed excise tax regime that disproportionately burdens legal cannabis businesses.

Tilray Brands CEO Irwin Simon, citing concerns over the current tax structure, stated, “We are disappointed that the Canadian government did not take the opportunity to implement cannabis tax reform in the budget. The current tax structure places an unfair burden on legal cannabis companies and hinders our ability to compete with the illicit market.”

Despite their grievances, financial records reveal substantial earnings for these executives. Simon, for instance, received $15,656,584 in total compensation for the fiscal year 2023.

Similarly, Michael DeGiglio, President and Chief Executive Officer of Village Farms International, expressed disappointment, noting, “We remain focused on working with industry and government to create more favorable tax conditions for the cannabis industry and advance a level playing field for all.”

DeGiglio received $747,416 in total compensation for fiscal year 2022.

David Klein, CEO of Canopy Growth Corp., echoed these sentiments, emphasizing that the firm was “disappointed that the Canadian government missed the opportunity to address the flawed excise tax regime in today’s budget.”

“This oversight signals a lack of commitment to the legal cannabis industry as well as the jobs and economic growth we create. The failure to correct this broken tax regime and to leave other critical issues like potency limits unaddressed will continue to hinder the growth of legal cannabis businesses and compromises consumer access to safe, regulated products,” he expounded.

Klein had total compensation of $6,459,521 in fiscal year 2023.

Nevertheless, the executives’ concerns are backed by concrete data. At least 123 federal cannabis business licenses were either canceled or pending cancellation in 2023 due to uncollected excise tax, indicating a worrying trend within the industry.

Canada’s legal cannabis industry won’t see any relief from excise taxes in the 2024 budget. This comes after two recommendations for tax reform were made to the government, but the budget largely ignores cannabis, mentioning it only once in a 430-page document.


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

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

Giant Mining Encounters Native Copper As Hole MHB-34 Hits 563 Metres Depth

Verses Hits Commercialization Stage With Genius AI Platform

Related News

Canopy Growth Jumps 81% On Renewed Sector Interest

Canopy Growth Corp (TSX: WEED), the embattled cannabis producer, has once again risen to the...

Monday, September 11, 2023, 04:19:52 PM

Tilray: Canaccord Lowers Target On Expected Adult-Use Sales Slump, Revised Hexo Deal

Earlier this week, Tilray Brands (TSX: TLRY) announced an update to their strategic alliance with...

Friday, June 17, 2022, 10:49:29 AM

Canopy to Buy Right to Acquire 100 percent of the Shares of Acreage in Proposed $3.4B Deal

It’s official. Canopy Growth Corporation (TSE: WEED) has announced a deal to purchase a right...

Thursday, April 18, 2019, 02:07:27 PM

Tilray Acquires Colorado Distillery To Expand Footprint In US “Upon Federal Cannabis Legalization”

Tilray (TSX: TLRY) evidently can’t decide if it wants to be a cannabis firm, or...

Wednesday, December 8, 2021, 08:41:48 AM

Canopy Growth: Canaccord Raises To Hold Rating, Lowers Price Target

On June 1st, Canopy Growth Corp (TSX: WEED) (NASDAQ: CGC) reported its fiscal fourth quarter...

Thursday, June 3, 2021, 11:44:00 AM