Features

Cannabis industry wants PM Mark Carney to act

Published on May 16, 2025 by Pat Bulmer

Photo: Contributed/Instagram

Now that Mark Carney has been confirmed as prime minister, the cannabis industry would like to see action from the federal government.

“Canada likes to position itself as a global leader in legal cannabis – but since legalization in 2018, the federal government has failed this industry and the tens of thousands of hardworking Canadians it supports,” said Paul McCarthy, president of the Cannabis Council of Canada, in a news release.

In particular, the industry wants excise tax and stamp reform.

“The current excise taxation framework is completely misaligned with today’s market realities,” the council said in its release.

“When it was introduced in 2018, cannabis sold for approximately $10 per gram. Today, producers are receiving as little as $3 per gram – yet the excise tax remains the greater of 10% of the product’s value or $1 per gram.

“This has created a crushing and unintended tax burden that now is three times higher than what was originally envisioned.”

The council wants the per gram duty dropped in favour of the 10% rate on wholesale prices.

The council also wants requirements to put a different excise stamp on products for each province and territory replaced with a single national stamp.

“This red tape adds costs and complexity for legal producers distributing products nationwide, placing a significant burden on an industry that is committed to being law-abiding, consumer-focused, and financially viable,” the council said.

The illicit cannabis market is still a problem, the council said.

“Illicit cannabis is estimated to make up between 25% and 40% of total sales in Canada – an unacceptable reality that demands urgent federal action.”

Organigram CEO Beena Goldenberg also called for excise tax and stamp reform — and urged the government to launch a national cannabis export strategy, led by Global Affairs Canada and International Trade.

“Through fairer taxation, export prioritization and by addressing interprovincial trade barriers and the illicit market, Canada’s legal cannabis sector can be set up for long-term success and real growth,” an Organigram news release said.