By Josh Wingrove and Maciej Onoszko – Bloomberg – Nov 9, 2017 Canada’s most populous province expects the country to reap significant revenue from the sale of legalized marijuana, and is pushing for a bigger cut of the tax windfall.
Ontario Finance Minister Charles Sousa expects strong demand when Canada legalizes recreational pot next year, but cautioned it must be cheap enough to undercut prices as low as C$8 per gram ($177 an ounce) on the illegal market.
“I think there’s going to be substantive revenue coming from cannabis,” Sousa said Tuesday during an editorial board interview at Bloomberg’s Toronto office. He expects a price to be “one of the latter” decisions made ahead of legalization. “We need to price it in such a way as to be competitive with the illicit market, and that’s all-in — so if we’re looking at a wholesale price of C$7 or C$8, we’re going to be at more” after taxes and fees.
Canada’s finance ministers will meet Dec. 11, though Sousa said he didn’t expect to set a wholesale pot price then. A spokesman for Canadian Finance Minister Bill Morneau said discussions over the tax and how to split it are ongoing.