Canadian Craft Cannabis is Being Taxed to Death.

Swift excise tax reform is a hill craft cannabis businesses are literally about to die on.

Craft cultivators are paying 20-30%+ of their TOP LINE revenues to excise tax today. This is often a higher monthly burden than their team’s salaries. We do not tax any other product in Canada so heavily, and current excise burdens are killing craft business. We need change now, and we need your voice to engage decision makers in Government.


CASE STUDY - Where does my money go in a $25 eighth?


We stand with Craft LP’s, processors, and micro cultivators coming forward to reiterate systemic financial dysfunction in the current excise regime. Craft businesses are paying more tax than they earn in margin across the board, and we have demonstrated repeatedly that current taxation policy is financially unsustainable for small growers.

We are watching our peers go insolvent under the burden of excessive taxation, and we want to believe in a future of Canadian cannabis that includes small businesses. The current excise regime has inhibited basic business fundamentals such as EBITDA and cashflow, and craft producers cannot continue to operate under this burden of unprecedented taxation.

Immediate excise reform is a hill craft growers are literally about to die on.

Large publicly traded LP’s have bankrolls in the hundreds of millions, and consistently sell their cannabis at loss. They can afford to wait until their competitors die before they need to turn a profit. Craft cannabis cannot.

Craft cultivators want to contribute to the legal marketplace, and we want to pay our fair share of taxes in service to the Canadian economy. We can’t pay any tax at all if we don’t have a survivable business, and under the current excise regime we won’t survive for long.

We are recommending two simple and proven changes to excise tax policy in Canada:

  1. Remove the $1 minimum per gram tax per gram, and maintain a floating % on every gram sold.

  2. Tax businesses based on scale, as we see in the Canadian beer industry. This compensates for the substantial economies of scale enjoyed by large producers. Introduce different tax tiers for: 

    1. Microcultivators

    2. Craft Scale Standard Growers

    3. Small to Medium Cultivation Enterprises

    4. Large Cultivators

Stand with us, and voice the critical and time sensitive importance of an economically sustainable industry for craft cultivators.