A group convened by the federal government to study the legislation that made cannabis legal is recommending the country review one of the industry's biggest gripes: excise taxes charged to pot producers.
The acknowledgment of the tax's financial burden comes as the legal cannabis sector has faced the sobering reality that the market isn't as big -- or as easy to navigate -- as predicted. Shortly after the report was released, Canopy Growth chief executive David Klein said his staff "welcome" the recommendations and encourage the government to use next month's federal budget to "take urgent action on the greatest issues impacting the industry."He named as priorities a review of the excise tax and another to study whether it should be applied to medical products.
It also advocated for Health Canada to develop a "standard dose," which companies could use to help convey the amount of a product that should be consumed at one time. The panel said the industry felt raising the limit would help it squeeze out illicit sellers with products containing higher THC amounts and prices for edibles that can be up to 90 per cent lower than legal counterparts.
Health Canada said Thursday it is reviewing the panel's conclusions and will provide recommendations to the federal government on potential next steps. It offered no timeline on when those suggestions may be delivered.