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Pot Tax Details Revealed

Pot Tax Details Revealed

Postby GoStumpy » Nov 10th, 2017, 9:16 pm

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 Friday, will be available for public comment until Dec. 7 as Canada prepares to legalize the drug by next summer.
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.
"I'm very comfortable that the level of taxation that has been determined as appropriate in this case achieves our goals of keeping the price sufficiently low to be competitive with an illicit market, while at the same time not creating an incentive for the consumption and purchase of this drug," said Liberal MP Bill Blair, the government's point man on legalizing marijuana.
"It's a matter of finding the right level of taxation and price in order to achieve both of those very important public purpose aims. I believe that the work that we have done sets a very appropriate level."
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.
The 50-50 tax revenue split idea has already rankled at least one premier — B.C.'s John Horgan — who complained that the provinces won't be getting a fair share, considering they will be doing the bulk of the heavy lifting on legalization, including policing, distributing and regulating the sale of marijuana.
The discussions are still ongoing, said Blair, noting that the consultation period will end just before the provincial and territorial finance ministers gather Dec. 10 and 11 in Ottawa to sit down with federal counterpart Bill Morneau.
"It is part of an ongoing discussion that our finance minister is having with his counterparts, provincially and territorially," Blair said. "It would be inappropriate of me to presume the results of the discussions that are currently taking place ... there is still work to be done in the consultations."
Municipalities, too, have recently indicated they deserve a share of the revenues.


The dollars seem to make sense on this, 10% tax seems reasonable, no?
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Re: Pot Tax Details Revealed

Postby GoStumpy » Nov 10th, 2017, 9:53 pm

Image

[icon_lol2.gif] [icon_lol2.gif]
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Re: Pot Tax Details Revealed

Postby jimmy4321 » Nov 11th, 2017, 6:20 am

As long as the final price is lower or competitive with the black market, most people will opt for the LEGAL transaction and that's added value in itself as most who will be customers aren't criminals and for once can openly purchase.
I really don't care if it's 25%, so long as they take most of the business from the black market.
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Re: Pot Tax Details Revealed

Postby TylerM4 » Nov 12th, 2017, 8:33 am

I must admit - I'm surprised they took the sensible approach here and I like what I'm hearing about how it'll be priced/taxed.

It's a bad state of affairs when government taking a sensible approach surprises people. :200:
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Re: Pot Tax Details Revealed

Postby maryjane48 » Nov 12th, 2017, 9:13 am

Anything over 8 a gram is to much as you can easily get it for 20 for 3and a half grams now. . If price is to high. Black market wont be impacted
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Re: Pot Tax Details Revealed

Postby Poindexter » Nov 12th, 2017, 11:36 am

The end price will be the job of the dispensary to choose and that will be dictated by what enough consumers are willing to pay. The only question was how much of the profits from the fledgling industry the government was going to be willing to share and 10% seems fair.

And as for what the price the market is willing the pay, it's important to note that the dispensaries will not be competing for the entire market. They will be willing to let those who are more price sensitive continue to purchase through the black market so aren't going to try and compete entirely on price. They know many will pay a little more because there's big difference between buying mid quality weed from a dealer in his smokey apartment, and buying from a legitimate dispensary that has quality control and enough variety to make a first rate mixed salad. :D
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Re: Pot Tax Details Revealed

Postby maryjane48 » Nov 12th, 2017, 12:44 pm

No your wrong . Its simple math . Plus anyone can grow 4 plants to any size . I can easily grow 4 15 foot high plants and sell it for 5 a gram .now i can get 8 grams for 40 bux so thats 5 a gram . If its higher than that then market forces say it will still be profitable to sell on black market as its cheaper

https://www.google.ca/amp/s/www.colorad ... 17-update/

Look the prices in colorado
4 to 5 a gram
They get it. You and apperently jt govt doesnt .
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Re: Pot Tax Details Revealed

Postby Even Steven » Nov 12th, 2017, 12:49 pm

jimmy4321 wrote:As long as the final price is lower or competitive with the black market


How can something be done legally be cheaper than something grown in the basement with stolen electricity?

You have to rent a giant warehouse. You have to hire people. You have to pay them competitive salaries. You have to pay their taxes. You have to pay their overtime. You have to pay for transportation, electricity, security, bookkeeping, and toilet paper.

But somehow magically it's supposed to be cheaper? Yeah, right.

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Re: Pot Tax Details Revealed

Postby maryjane48 » Nov 12th, 2017, 1:11 pm

I grew pot and paid my hydro bill . For 6 thousand watt high pressure sodiums and bunch squirrel fans plus water pumps worked out to me growing 14 thousand worth every 6 weeks. Thr powerr was less than 300 a month and food less than thousand . Rest was profit. Pots cheap to grow facts vs your fantasy :smt045
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Re: Pot Tax Details Revealed

Postby JLives » Nov 12th, 2017, 3:34 pm

Even Steven wrote:How can something be done legally be cheaper than something grown in the basement with stolen electricity?

You have to rent a giant warehouse. You have to hire people. You have to pay them competitive salaries. You have to pay their taxes. You have to pay their overtime. You have to pay for transportation, electricity, security, bookkeeping, and toilet paper.

But somehow magically it's supposed to be cheaper? Yeah, right.


It costs as much to grow marijuana as it does tomatoes. The black market is making HUGE profit margins right now. There is plenty of room to bring prices down and still make a reasonable profit.
Last edited by JLives on Nov 12th, 2017, 3:50 pm, edited 1 time in total.
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Re: Pot Tax Details Revealed

Postby Smurf » Nov 12th, 2017, 3:48 pm

And the black realizes that. The question is does the government? I believe the tax dollars they are looking for are a pipe dream. As far as the province with all the expenses they will occur they will be left with very little.
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Re: Pot Tax Details Revealed

Postby Even Steven » Nov 12th, 2017, 4:22 pm

Smurf wrote:I believe the tax dollars they are looking for are a pipe dream.


Indeed. The stoners will pay as little as possible for their weed. They're not wine connoisseurs who pay 100X for wine just because it's better. The stoners only pay as little as possible because most people who do smoke weed are lower income peeps. And as soon as it becomes evident that buying from the dealer is still cheaper than from a typical govt-sanctioned operation that has to pay for everything AND pay taxes, they'll continue buying from a dealer. After all, dealers don't have to pay taxes, don't have to pay CPP, don't have to pay for electricity, don't have to pay for proper operations - and that's why black market weed will always be cheaper just like growing your own tomatoes is cheaper than buying one from the store.

Pipe dream is correct. And whatever taxes they'll collect won't even cover the stamps they use to send out their memos.

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Re: Pot Tax Details Revealed

Postby Btfsplck » Nov 12th, 2017, 5:18 pm

^^^ LOL, you got all it figured out don't you.

If the government want's to kill the black market they will need to set the price point low enough to undercut the black market for a long enough period that grow shows decide to throw in the towel. That and bring the black market guys out of the dark by allowing them to participate in the industry. It's going to be tough to do, that's for sure.
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Re: Pot Tax Details Revealed

Postby maryjane48 » Nov 12th, 2017, 5:30 pm

Evven steven needs to grow some inteligence. Only lower income folks smokecweed ? [icon_lol2.gif] oh really . I will counter with only neandrathals would say something as ignorant as that

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Re: Pot Tax Details Revealed

Postby Gilchy » Nov 12th, 2017, 8:01 pm

Even Steven wrote:Indeed. The stoners will pay as little as possible for their weed. They're not wine connoisseurs who pay 100X for wine just because it's better. The stoners only pay as little as possible because most people who do smoke weed are lower income peeps.


Lol.

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