Canada, provinces end dispute on how to split pot tax revenues (updated)

East Side Games

11/12/2017 21:39

(Adds details, background) 
    OTTAWA, Dec 11 (Reuters) - The Canadian government and the 
10 provinces on Monday settled a disagreement on how to split 
the revenues from a proposed federal tax on the sale of 
marijuana once the drug is legalized, Finance Minister Bill 
Morneau said. 
    Morneau told reporters that for an initial two years, 75 
percent of the money would go to the provinces and 25 percent to 
Ottawa.  
    The federal government had initially suggested a 50-50 
split, an idea the provinces rejected on the grounds it was not 
enough to help cover the extra costs of enforcing the new rules 
once they take effect next July. 
    Morneau said he and his provincial counterparts also agreed 
to stick to Ottawa's proposal for a tax on all cannabis products 
of C$1 (78 cents) per gram (0.04 ounce), or 10 percent of the 
retail price, whichever is higher. 
    Keeping the tax relatively low would help authorities keep 
the drug out of the hands of underage users and reduce related 
crime, he added. The Liberals plan to allow recreational 
marijuana across the entire country by July 2018, making it the 
first Group of Seven country to do so. 
    Morneau spoke after a two-day meeting with counterparts from 
the provinces as well as Canada's three sparsely populated 
northern territories, which also agreed to the revenue split. 
    ($1 = 1.2857 Canadian dollars) 
 
 (Reporting by David Ljunggren; Editing by Chris Reese and Peter 
Cooney) 
 ((david.ljunggren@thomsonreuters.com; +1 613 235 6745; fax +1 
613 235 5890; Reuters Messaging: 
david.ljunggren.reuters.com@reuters.net)) 
 
Keywords: CANADA CANNABIS/