The Canadian government collected more than 1.5 billion Canadian dollars (just over a billion euros) in profits and tax revenues from cannabis in the fiscal year 2021-2022, according to data recently published by Statistics Canada, reports MJBizDaily.
For the fiscal year ending March 2022, the total net income of provincially-owned cannabis businesses, plus total taxes and other revenue, was C$1.55 billion.
Data are not available for other years.
MJBizDaily previously reported that Canada’s federal government imposed more than C$1 billion in total duties on cannabis products between 2018 – when adult sales were launched – and 2022, according to the latest federal data.
Total duties imposed by the Canada Revenue Agency reached C$752.5 million in 2021-22, a 46% increase from fiscal year 2020-21, in which the federal government collected 514 million Canadian dollars.
About three quarters of the excise taxes applied by the federal government on cannabis sales are shared with the provinces and territories.
In the 2021-22 fiscal year, Statistics Canada reports that provincial cannabis authorities, which act as wholesalers, achieved sales of C$3.1 billion. Cannabis authority profits totaled C$332.3 million in 2021-22.
Other tax revenues from cannabis sales are as follows:
- Harmonized Sales Tax: C$236.1 million
- Goods and Services Tax: C$110.7 million
- Provincial/territorial sales tax: C$110.8 million
- Other provincial/territorial revenue: $9.8 million CAD
Despite all this, private companies are struggling to stay afloat due to excessive taxation, as the cannabis industry adds billions to state coffers.
Federally-licensed cannabis producers owed the Canada Revenue Agency C$192.7 million ($145 million) as of March 31, 2023, more than three times as much as the C$52.4 million Canadian dollars in fiscal year 2021-22, reports separately MJBizDaily.
In this context, the publication notes that the Canada Revenue Agency has increased the pressure on producers with overdue payments.
The government recognized the need for ‘recalibration’ already 18 months ago, but the lack of decision continues to push the whole industry, especially small businesses, to a critical breaking point. Dan Sutton, CEO of B.C.-based cannabis producer Tantalus Labs, told the publication.
