The Canadian government have announced their 2018 budget, and with it more details on how weed will be taxed after its legalization.



As it looks, legal weed will be taxed at about $1 per gram. According to the budget, low-THC cannabidiol oils and other low-THC therapeutic products (lotions, edibles etc.) will not be taxed. Prescription drugs derived of marijuana will be exempt from the tax as well.


When marijuana does becomes legal and is taxed, the tax will be applied to the federally-licensed producer. The tax will be determined by either a flat rate on the quantity of the cannabis or a percentage of the sale price – whichever is ~higher~.


In addition to the new details, the budget states that the federal government will spend $62.5 million before the summer in public education campaigns on the dangers of illegal drug use. An additional $10 million will be spent assessing the impact of legalization on mental health. While it may seem like a decent chunk of change, but the budget forecasts $690 million in legal marijuana tax revenue over the next five years, with $35 million coming in during the first year alone.


Curious to learn more about legal marijuana in Canada? Read more HERE!

Check out the highlights from the 2018 budget HERE.