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Canada

Canadians could pay at least $1 per gram in weed tax, plus GST: feds

WATCH ABOVE: Parliamentary Secretary to the Minister of Finance, Joël Lightbound announced Friday a proposed taxation on legal marijuana.

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 by the federal government Friday, will be available for public comment until Dec. 7 as Canada prepares to legalize the drug by next summer.

READ MORE: Cannabis producers skeptical of whether Ontario’s plan can compete with black market

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.

On an $8 gram of pot sold in Ontario, for instance, the final purchase price would be $10.17, with a $1 excise tax and $1.17 HST. In New Brunswick, it would be $10.35.

Alberta, which has no provincial sales tax, could see the cheapest pot in the country at just $9.45 for an $8 gram of weed.

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WATCH: Trudeau outlines proposed excise tax on legalized marijuana

Trudeau outlines proposed excise tax on legalized marijuana
Trudeau outlines proposed excise tax on legalized marijuana

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

READ MORE: Marijuana edibles won’t be sold until July 2019

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.

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