Canadian government collects 1.5 billion $CA from cannabis in 2021-22

The Canadian government collected more than C$1.5 billion (just over €1 billion) in profits and tax revenues from cannabis in fiscal year 2021-2022, according to data recently released by Statistics Canada, reports MJBizDaily.

For the fiscal year ending March 2022, total net income from provincially-owned cannabis businesses, plus total taxes and other revenues, amounted to C$1.55 billion.

Data are not available for other years.

MJBizDaily previously reported that Canada's federal government imposed more than C$1 billion in total duties on cannabis products between 2018 - when adult sales were launched - and 2022, according to the latest federal data.

Total fees imposed by the Canada Revenue Agency reached C$752.5 million in 2021-22, an increase of 46 % over fiscal 2020-2021, when the federal government collected C$514 million.

About three-quarters of the excise taxes applied by the federal government on cannabis sales are shared with the provinces and territories.

In fiscal year 2021-22, Statistics Canada reports that provincial cannabis authorities, which act as wholesalers, achieved sales of C$3.1 billion. Cannabis authority profits totaled C$332.3 million in 2021-22.

Other tax revenues from cannabis sales are as follows:

• Harmonized sales tax: C$236.1 million
• Goods and Services Tax: C$110.7 million
• Provincial/territorial sales tax: C$110.8 million
• Other provincial/territorial revenues: C$9.8 million

Despite all this, private companies struggle to stay afloat due to excessive taxation, while the cannabis industry adds billions of dollars to government coffers.

Federally licensed cannabis producers thus owed the Canada Revenue Agency C$192.7 million ($145 million) as at March 31, 2023, more than three times the C$52.4 million in fiscal 2021-22, reports separately MJBizDaily.

In this context, the publication notes that the Canada Revenue Agency has increased pressure on producers with overdue payments.

The government recognized the need for «recalibration» as long as 18 months ago, but the lack of decisions continues to push the entire industry, especially small businesses, to a critical breaking point,» said Dan Sutton, CEO of cannabis producer Tantalus Labs, based in British Columbia, to the publication.