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Manitobans won’t be charged PST on legal pot

Manitobans will not have to pay PST on pot when it becomes legal. File / Global News

The province has announced Manitobans will not have to pay provincial sales tax (PST) on pot, when it becomes legal on Oct. 17.

It was announced as part of the Budget Implementation and Tax Statutes Amendment Act, released by the Progressive Conservative government Wednesday.

The province previously announced a social responsibility fee of six per cent which will be applied to the total annual revenues of each cannabis retailer.

READ MORE: Six per cent of Manitoba pot revenues to go to social responsibility fee

A markup of 75 cents per gram will also be applied, plus an additional nine per cent at the wholesale distribution level.

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

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The province has stated they want to keep the prices low to drive out the illegal market.

WATCH: Pot rules, penalties in line with tobacco, alcohol: Manitoba ministers

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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