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Six per cent of Manitoba pot revenues to go to ‘social responsibility fee’

A marijuana growing facility. Global News File

When recreational cannabis is legalized later this year, it will be subject to a government fee and a wholesale markup in Manitoba.

The provincial government says a “social responsibility fee” of six per cent will be applied to a cannabis retailer’s total annual revenues.

It will take effect next year and be payable six months after the end of each calendar year.

READ MORE: Manitoba says no to homegrown pot, unveils legal age to buy

The government is also applying a markup of 75 cents per gram, plus an additional nine per cent, at the wholesale distribution level.

The Progressive Conservative government says the money will help pay for public education, safety enforcement and addictions programs.

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Enterprise Minister Blaine Pedersen says the province will monitor the cannabis market and may adjust the markup and fee in the future.

He says the government wants to drive out the illegal market by keeping prices low, while also promoting public safety.

WATCH: Manitoba details the province’s new pot rules:

Click to play video: 'Pot rules, penalties in line with tobacco, alcohol: Manitoba ministers'
Pot rules, penalties in line with tobacco, alcohol: Manitoba ministers

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