#DontTaxMedicine: the Canadian hashtag protesting federal taxes on medical cannabis

The patient association Canadians for Fair Access to Medical Marijuana (CAEMM, or CFAMM in English) advocates for ensuring that the rights of patients treated with cannabis are respected. This begins, above all, with fair and affordable access to their medication. However, the government imposes heavy taxes on cannabis—both recreational and medical—driving up prices. The association has therefore launched the "Don't Tax Medicine" campaign and its hashtag #TaxMedicine! to protest federal taxes on medical cannabis.

The Forgotten Medical Cannabis Patients

«Medical cannabis patients in Canada have been neglected for far too long; we must change that,» states the CFAMM. For example, the association is fighting to exempt patients from legal restrictions on cannabis use at work or while driving. Because of their treatment, some patients face restrictions in these areas: they must choose between receiving treatment and working, or receiving treatment and driving. «By failing to include exemptions for these patients, we were overlooked during the legalization of recreational cannabis,» the association explains.

Federal taxes, in particular, are on the association’s radar. «More than 480,000 Canadian patients use medical cannabis for a variety of conditions, from chronic pain to arthritis and mental health issues,» explains Gerald Major, president of the CFAMM. «The government makes it extremely difficult for them to cover the cost of their treatment, and many tell us they cannot afford to buy the dose recommended by their doctor.».

These taxes threaten to drive patients to the black market or to underdose, as is the case with Vincent Lefaive, a retired police sergeant and patient: «I have a bill for $900 a month right here in my hands—no one can afford that. That’s the price of a mortgage. The financial burden of my treatment makes it impossible for me to use my full dose. The government’s untenable decision to tax medical cannabis directly impacts my ability to afford the dose my doctor recommended.».

An Unfair Tax

Since its legalization, medical cannabis has been subject to the Harmonized Sales Tax (HST), whereas other prescription drugs are not. In addition to this tax, an excise tax was added when the the legalization of recreational cannabis on October 17. Since then, the federal government has required manufacturers to charge patients a tax of 10% or 1$ per gram, in addition to the HST, which is calculated based on the base price. In total, the price of the medication may increase by 25% depending on the province.

The association believes these taxes are unfair and unworthy of the Canadian spirit: «In Canada, we don’t tax medications, and we don’t target the most vulnerable—those living with chronic illnesses.» Excise taxes are normally imposed on products that pose a threat to public health or the environment (tobacco, alcohol, gasoline, rubber, and polluting vehicles). It is therefore reasonable, in the association’s view, for this tax to apply to recreational use but not to medical use: «A medication has no place on this list.».

The "Don't Tax Medicine" Campaign

Launched in 2017, the “Don’t Tax Medicine” campaign aims to raise public awareness of this injustice in order to encourage legislative reform. It invites individuals to send letters to local, provincial, and federal elected officials asking them to take action and demand that the Finance Committee eliminate these taxes. Originally, the goal was to gather enough support among lawmakers to amend the law before the announcement of the 2019 federal budget in late February—its release having been postponed due to the SNC-Lavalin scandal, an attempt by the Canadian government to interfere in a trial involving a major industrial firm. Today, the association hopes to make its demand a key issue in the electoral debate leading up to the upcoming parliamentary elections scheduled for this coming October.

The campaign succeeded in mobilizing support, with more than 28,000 emails sent to elected officials by members of the public, as well as support from more than 40 patient organizations and the industry: Aurora, Hexo, Tilray, Organigram, PureSinse, Strainprint, Ample Organics, and Gage Cannabis. The CFAMM was even heard by members of Congress a few weeks ago. On that occasion, Cam Battley, Aurora’s CCO, unveiled an online calculator tax revenue generated by the government, in real time, through taxes on medical cannabis. The amount currently stands at 129 million Canadian dollars and continues to grow.

The campaign also reached some opposition and government lawmakers: «The Conservatives believe that prescription drugs should not be taxed. For the sake of consistency, this means that medical cannabis prescriptions shouldn’t be taxed either,» explains Marilyn Gladu, a CPC member and the opposition’s official health critic. For his part, Liberal Nathaniel Erskine-Smith states: «We must make patients» needs our priority, and that means ensuring access to affordable medications. Imposing an excise tax runs counter to this goal and is a mistake. Oregon, Colorado, and California do not impose excise taxes on medical cannabis. We are the only jurisdiction in North America that taxes medical cannabis the same way we tax recreational cannabis.”.