Ontario made $520 million from cannabis sales last year

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Ontario made $520 million from cannabis sales last year

< p class="sc-v64krj-0 knjbxw">Some cannabis stores are complaining about the Ontario government's tax rate being too high.

Provincial revenue from the sale of cannabis was $520 million in 2021- 2022. Some retailers of the product accuse the Ford government of overtaxing them.

The Ontario Cannabis Corporation, as official supplier, imposes a surcharge on private outlets of more than 30% .

The government also taxes local producers.

In some cities like Toronto, where cannabis shops have proliferated, some retailers say they are struggling to make ends meet.

Sean Kady , owner of an outlet in west Toronto, is urging the province to share a bit more of the pie with people trying to make the industry work by lowering its tax rate.

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“The price of an ounce [of cannabis in our store] is $100 and up. However, consumers can buy a similar quality product on the black market for $50 to $70.

— Sean Kady, owner of Cosmic Charlies cannabis store

Michael Armstrong, professor of management at Brock University in St. Catharines, notes that at the Currently the government is pocketing about 44 cents for every dollar a consumer spends at a cannabis retail outlet.

He too believes the province should review its system of taxing these cannabis retailers.

Finance Minister Peter Bethlenfalvy's office responds via email: The government will continue to work with the [Ontario Cannabis Company] to ensure its pricing schedule wholesale helps support a competitive market.

Based on information from CBC's Michael Smee

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