Feds propose legal weed tax of at least $1 per gram

If you plan to buy legal marijuana next year get ready to be taxed

Anyone planning to purchase legal marijuana next year better be prepared to pay the taxman as well, to the tune of at least $1 for every gram — plus GST.

The proposed federal tax scheme, announced today, will be available for public comment until Dec. 7 as Canada prepares to legalize the drug by next summer.

RELATED: John Horgan blasts Ottawa’s marijuana tax grab

The plan would add an excise tax of $1 per gram or 10 per cent of the final retail price, whichever is higher, with the revenues to be divided equally between Ottawa and the provinces.

GST will be also be applied, so if the retail price of a single gram of pot is $8, consumers would pay a $1 excise tax and $1.17 in GST for a total of $10.17.

The taxes would be levied on both on fresh and dried marijuana, pot-infused oils and seeds and seedlings used for home cultivation.

RELATED: Five Things to consider about the Liberal government’s plan to legalize pot

The 50-50 tax revenue split idea has already rankled some premiers who say their governments have to do the bulk of the heavy lifting on legalization, including policing, distributing and regulating the sale of marijuana.

RELATED: Province, Feds see lots of work ahead of marijuana legalization

The Canadian Press

Just Posted

PHOTO: Add flavour to your weekend with the Chilliwack Garlic Festival

The annual garlicky event runs Saturday and Sunday at Fantasy Farms

Fleeing helicopter that landed in Chilliwack part of major cross-border drug bust: documents

The helicopter eventually landed at a rural property near Chilliwack

Vedder Rotary trail network in Chilliwack will be closed for five days on the south side

The upgrade will take until Friday so trail users asked to take alternate routes

Chilliwack encouraged to commemorate liberation of Holland

Planning already underway to mark the 75th anniversary of the event

UPDATE: RCMP confirm body of missing Chilliwack senior found

Ethel ‘Grace’ Baranyk had severe dementia

VIDEO: B.C. Mountie killed by drunk driver honoured by memorial playground

Sarah Beckett Memorial Playground opens with ceremony in Langford

B.C. man who died after rescuing swimmer was known for helping others

Shaun Nugent described as a dad, a coach, a hero and ‘stand-up guy’ at celebration of life

Border crossings across Lower Mainland seeing lengthy delays

Sumas, Peace Arch and Surrey-Blaine border crossings seeing long wait times

Thousands cycle to conquer cancer

The 11th annual Ride to Conquer Cancer took place Saturday morning, Aug. 24 in Surrey, B.C.

PHOTOS: Brazil military begins operations to fight Amazon fires

Amazon fires have become a global issue, escalating tensions between Brazil and European countries

Racist confrontation in Richmond parking lot caught on camera

Woman can be heard yelling racial slurs, swear words at woman in apparent parking dispute

Groups ready campaign to help young voters identify ‘fake news’ in election

The media literacy campaign to focus on identifying misinformation and suspicious sources online

Big rally in northern B.C. draws attention to continuing lumber crisis

Mayor Joan Atkinson says about 400 workers have been directly affected by the closure of the Canfor mill

Orangeville Northmen take Minto Cup at Langley Events Centre

Swept best-of-five series 3-0 over Victoria Shamrocks

Most Read