The economics of cannabis in Canada is highlighted in this article. Canada's cannabis industry generates $8.16 Billion for the country's economy.

According to StatsCan, the legal cannabis industry contributed about $3.96 billion to Canada's gross domestic product as of February. That is up 215% since recreational cannabis was legalized in Oct. 2018.

All provinces* and territories of Canada signed a CCTA, or Coordinated Cannabis Taxation Agreement, with the Canadian Federal Government.

*Except for Manitoba, who made a separate deal with the Government.

This Agreement states that the combined rate of all federal, provincial, and territorial cannabis-specific duties and taxes shall not exceed $1 per gram or 10% of the sale price of a producer.

The Agreement also states that profits from excise duties on cannabis goods will be allocated as follows:

  • 75% to the provincial and territorial governments
  • 25% to the Federal Government

Manitoba entered into the Federal Government's Coordinated Tax Arrangement with an agreement just between Canada and Manitoba.

In Manitoba, a wholesale mark-up on non-medical cannabis of $0.75 per gram was applied by the Manitoba Liquor and Lotteries (MBLL). The Manitoba government will also collect a Social Responsibility Fee (SRF) from a cannabis manufacturer on the annual sales of all provincially approved cannabis stores from the selling of non-medical cannabis.

The Sales Tax on Cannabis Products in Canada is as follows:

  • Alberta: 5% GST
  • British Columbia: 12% GST/PST
  • Manitoba (recreational cannabis): 5% GST
  • Manitoba (medical cannabis): 13% GST/PST
  • New Brunswick: 15% HST
  • Newfoundland & Labrador: 15% HST
  • Northwest Territories: 5% GST
  • Nova Scotia: 15% HST
  • Nunavut: 5% GST
  • Ontario: 13% HST
  • Prince Edward Island: 15% HST
  • Quebec: 14.975% GST/QST
  • Saskatchewan: 11% GST/PST
  • Yukon: 5% GST