Canada’s Cannabis Industry Fees Increase to Reflect Inflation
- Canadian government officials are increasing regulatory fees paid by licensed cannabis operators to match the country’s 4.4% inflation rate from April 2022 to April 2023.
- The fee increases will begin on April 1, 2024, and the collected funds will be used to regulate Canada’s federally legal cannabis market.
- Fees will be adjusted annually on April 1 to reflect changes in the April All-items Consumer Price Index for Canada for the previous fiscal year.
- In addition to application screening fees, cannabis operators must pay an annual regulatory fee, either a flat rate payment or a percentage of gross revenue, whichever is higher; some operators have struggled to pay due to financial difficulties.
Canadian government officials are increasing the regulatory fees paid by licensed cannabis operators to match Canada’s 4.4% inflation rate from April 2022 to April 2023.
The fee increases will take effect starting April 1, 2024; the money collected is supposed to be used to regulate the country’s federally legal cannabis market.
The Canada Gazette, which is published by the federal government, said the fees are to be adjusted each year on April 1 to reflect changes in the “April All-items Consumer Price Index for Canada … for the previous fiscal year and rounded to the next highest dollar.”
As a result, these are the new regulatory fees for Canada’s cannabis industry:
In addition to the application screening fees, Canadian cannabis operators are expected to pay an annual regulatory fee, although some operators have historically been unable to pay up due to financial difficulties, MJBizDaily reports. The annual fee can be either a flat rate payment or a percentage of the company’s gross revenue, whichever is higher.