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Petition to cut 15% fee on BC craft cannabis producers

Published on October 25, 2024 by Pat Bulmer

Photo: Contributed

A group of BC cannabis companies are campaigning to reduce a 15% fee being charged to craft producers.

The BC Cannabis Alliance has launched a web page and change.org petition demanding a cut to the 15% proprietary fee craft producers must pay to the BC Liquor Distribution branch.

“BC’s Direct Delivery program allows small producers to sell and deliver product directly to licensed retailers. Unfortunately, they still have to pay their 15% wholesale mark-up to the BC Liquor Distribution Board (BCLDB) as a ‘Proprietary Fee,’” the coalition explains on the petition site.

“For reference, craft breweries pay a 3.5% fee for the same service. The BC government got this right with craft breweries and it’s time to make it right with craft cannabis too.”

As of Oct. 24, the petition had nearly 500 signatures.

“Cannabis fees and taxes are ridiculously high and not in line with other regulated industries like alcohol,” Gemma Hayes of Salmo wrote on the petition page. “The cannabis industry is being strangled and its getting to a point where craft cannabis and high quality medicinal cannabis will all be shipped abroad because it is impossible to maintain in Canada. Even successful brands are struggling.”

The coalition claims 53% of cannabis sale proceeds go to the government.

“The BCLDB’s 15% ‘Proprietary Fee’ was introduced along with the Direct Delivery program and, in our opinion, is charged in lieu of the BCLDB’s standard 15% wholesale mark-up,” the coalition website says. “Our best producers, processors, and retailers struggling to make ends meet means (it) is a clear indication of failed policy. If regulations don’t improve, Canada will lose its leadership position within the emerging global cannabis industry.”

The coalition lists 14 supporting companies on its webpage.

A parliamentary committee is reviewing the federal excise tax on cannabis, the website says.