Regulatory and Legislative Proposals Relating to the Taxation of Cannabis
PART 1
Draft Excise Duties on Cannabis Regulations
1 It is proposed that the Excise Duties on Cannabis Regulations be made as follows:
Excise Duties on Cannabis Regulations
Interpretation
Definitions
1 The definitions in this section apply in these Regulations.
Act means the Excise Act, 2001. (Loi)
base amount means, in respect of a cannabis product and a listed specified province
(a) if the cannabis product is delivered or made available to a person that obtains it otherwise than by means of a purchase, the fair market value of the cannabis product;
(b) in any other case, the amount determined by the formula
[(A − B) − C] × [100%/(100% + D)]
where
A is the total determined for A in paragraph (a) of the definition dutiable amount in section 2 of the Act in respect of the cannabis product;
B is the total determined under section 1 of Schedule 7 to the Act in respect of the cannabis product;
C is
(a) if the listed specified province is Ontario, the amount determined under section 1 of Schedule 1 in respect of the cannabis product,
(b) if the listed specified province is New Brunswick, the amount determined under section 1 of Schedule 4 in respect of the cannabis product,
(c) if the listed specified province is Prince Edward Island, the amount determined under section 1 of Schedule 6 in respect of the cannabis product,
(d) if the listed specified province is Alberta, the amount determined under section 1 of Schedule 7 in respect of the cannabis product,
(e) if the listed specified province is Saskatchewan, the amount determined under section 1 of Schedule 8 in respect of the cannabis product,
(f) if the listed specified province is Newfoundland and Labrador, the amount determined under section 1 of Schedule 9 in respect of the cannabis product, and
(g) if the listed specified province is Nunavut, the amount determined under section 1 of Schedule 12 in respect of the cannabis product; and
D is
(a) if the listed specified province is Ontario, the percentage set out in section 5 of Schedule 1,
(b) if the listed specified province is New Brunswick, the percentage set out in section 5 of Schedule 4,
(c) if the listed specified province is Prince Edward Island, the percentage set out in section 5 of Schedule 6,
(d) if the listed specified province is Alberta, the percentage set out in section 5 of Schedule 7,
(e) if the listed specified province is Saskatchewan, the percentage set out in section 5 of Schedule 8,
(f) if the listed specified province is Newfoundland and Labrador, the percentage set out in section 5 of Schedule 9, and
(g) if the listed specified province is Nunavut, the percentage set out in section 5 of Schedule 12. (montant de base)
listed specified province means any of the following specified provinces:
(a) Ontario;
(b) New Brunswick;
(c) Prince Edward Island;
(d) Alberta;
(e) Saskatchewan;
(f) Newfoundland and Labrador; and
(g) Nunavut. (province déterminée désignée)
Cannabis Product Definition
Cannabis product — exclusions
2 For the purposes of the definition cannabis product in section 2 of the Act, the following substances, materials or things are not included in that definition:
(a) a test kit, as defined in subsection 2(1) of the Narcotic Control Regulations, that contains cannabis and for which a registration number has been issued, but not cancelled, under those Regulations; and
(b) a reference standard — being a highly purified and standardized form of a given substance used as a measurement base to confirm the identity, strength, quality or purity of a substance —
(i) that contains a known quantity or concentration of a chemical component of cannabis, such as cannabidiol, cannabidiolic acid, delta-9-tetrahydrocannabinolic acid or THC,
(ii) that is designed to be used during the course of a chemical or analytical procedure for a medical, laboratory, industrial, educational, law administration or enforcement, or research purpose, and
(iii) that is not intended to be consumed or administered.
Additional Cannabis Duty
Dutiable amount — prescribed percentage
3 (1) For the purposes of subparagraph (i) of the description of C in paragraph (a) of the definition dutiable amount in section 2 of the Act, the prescribed percentage in respect of a specified province is
(a) in the case of Ontario, the total of
(i) the percentage set out in section 2 of Schedule 1, and
(ii) the percentage set out in section 5 of Schedule 1;
(b) in the case of Quebec, the percentage set out in section 2 of Schedule 2;
(c) in the case of Nova Scotia, the percentage set out in section 2 of Schedule 3;
(d) in the case of New Brunswick, the total of
(i) the percentage set out in section 2 of Schedule 4, and
(ii) the percentage set out in section 5 of Schedule 4;
(e) in the case of British Columbia, the percentage set out in section 2 of Schedule 5;
(f) in the case of Prince Edward Island, the total of
(i) the percentage set out in section 2 of Schedule 6, and
(ii) the percentage set out in section 5 of Schedule 6;
(g) in the case of Alberta, the total of
(i) the percentage set out in section 2 of Schedule 7, and
(ii) the percentage set out in section 5 of Schedule 7;
(h) in the case of Saskatchewan, the total of
(i) the percentage set out in section 2 of Schedule 8, and
(ii) the percentage set out in section 5 of Schedule 8;
(i) in the case of Newfoundland and Labrador, the total of
(i) the percentage set out in section 2 of Schedule 9, and
(ii) the percentage set out in section 5 of Schedule 9;
(j) in the case of Yukon, the percentage set out in section 2 of Schedule 10;
(k) in the case of the Northwest Territories, the percentage set out in section 2 of Schedule 11; and
(l) in the case of Nunavut, the total of
(i) the percentage set out in section 2 of Schedule 12, and
(ii) the percentage set out in section 5 of Schedule 12.
Dutiable amount — prescribed circumstances
(2) For the purposes of paragraph (b) of the definition dutiable amount in section 2 of the Act, if a cannabis product is delivered or made available in a specified province to a person that obtains it otherwise than by means of a purchase and if an amount in respect of the cannabis product is to be determined under any of sections 2 and 6 of Schedules 1, 4, 6 to 9 and 12 and section 2 of Schedules 2, 3, 5, 10 and 11, the dutiable amount of the cannabis product is equal to the fair market value of the cannabis product.
Specified province
4 For the purposes of the definition specified province in section 2 of the Act, the following provinces are prescribed:
(a) Ontario;
(b) Quebec;
(c) Nova Scotia;
(d) New Brunswick;
(e) British Columbia;
(f) Prince Edward Island;
(g) Alberta;
(h) Saskatchewan;
(i) Newfoundland and Labrador;
(j) Yukon;
(k) the Northwest Territories; and
(l) Nunavut.
Subsections 158.2(1) and 158.27(3) of Act — prescribed circumstances
5 (1) For the purposes of subsections 158.2(1) and 158.27(3) of the Act, a duty in respect of a specified province is imposed under those subsections on cannabis products produced in Canada if the cannabis products are for consumption, use or sale to consumers in the specified province.
Subsections 158.2(1) and 158.27(3) of Act — calculation of duty
(2) For the purposes of subsections 158.2(1) and 158.27(3) of the Act, the amount of duty imposed under those subsections in respect of cannabis products produced in Canada and in respect of a specified province is determined as follows:
(a) in the case of Ontario, the amount that is equal to the total of
(i) the amount that is the greater of
(A) the amount determined in respect of the cannabis products under section 1 of Schedule 1, and
(B) the amount determined in respect of the cannabis products under section 2 of Schedule 1, and
(ii) the amount determined in respect of the cannabis products under
(A) section 5 of Schedule 1 if the amount determined under clause (i)(A) is greater than or equal to the amount determined under clause (i)(B), or
(B) section 6 of Schedule 1 in any other case;
(b) in the case of Quebec, the amount that is equal to the greater of
(i) the amount determined in respect of the cannabis products under section 1 of Schedule 2, and
(ii) the amount determined in respect of the cannabis products under section 2 of Schedule 2;
(c) in the case of Nova Scotia, the amount that is equal to the greater of
(i) the amount determined in respect of the cannabis products under section 1 of Schedule 3, and
(ii) the amount determined in respect of the cannabis products under section 2 of Schedule 3;
(d) in the case of New Brunswick, the amount that is equal to the total of
(i) the amount that is the greater of
(A) the amount determined in respect of the cannabis products under section 1 of Schedule 4, and
(B) the amount determined in respect of the cannabis products under section 2 of Schedule 4, and
(ii) the amount determined in respect of the cannabis products under
(A) section 5 of Schedule 4 if the amount determined under clause (i)(A) is greater than or equal to the amount determined under clause (i)(B), or
(B) section 6 of Schedule 4 in any other case;
(e) in the case of British Columbia, the amount that is equal to the greater of
(i) the amount determined in respect of the cannabis products under section 1 of Schedule 5, and
(ii) the amount determined in respect of the cannabis products under section 2 of Schedule 5;
(f) in the case of Prince Edward Island, the amount that is equal to the total of
(i) the amount that is the greater of
(A) the amount determined in respect of the cannabis products under section 1 of Schedule 6, and
(B) the amount determined in respect of the cannabis products under section 2 of Schedule 6, and
(ii) the amount determined in respect of the cannabis products under
(A) section 5 of Schedule 6 if the amount determined under clause (i)(A) is greater than or equal to the amount determined under clause (i)(B), or
(B) section 6 of Schedule 6 in any other case;
(g) in the case of Alberta, the amount that is equal to the total of
(i) the amount that is the greater of
(A) the amount determined in respect of the cannabis products under section 1 of Schedule 7, and
(B) the amount determined in respect of the cannabis products under section 2 of Schedule 7, and
(ii) the amount determined in respect of the cannabis products under
(A) section 5 of Schedule 7 if the amount determined under clause (i)(A) is greater than or equal to the amount determined under clause (i)(B), or
(B) section 6 of Schedule 7 in any other case;
(h) in the case of Saskatchewan, the amount that is equal to the total of
(i) the amount that is the greater of
(A) the amount determined in respect of the cannabis products under section 1 of Schedule 8, and
(B) the amount determined in respect of the cannabis products under section 2 of Schedule 8, and
(ii) the amount determined in respect of the cannabis products under
(A) section 5 of Schedule 8 if the amount determined under clause (i)(A) is greater than or equal to the amount determined under clause (i)(B), or
(B) section 6 of Schedule 8 in any other case;
(i) in the case of Newfoundland and Labrador, the amount that is equal to the total of
(i) the amount that is the greater of
(A) the amount determined in respect of the cannabis products under section 1 of Schedule 9, and
(B) the amount determined in respect of the cannabis products under section 2 of Schedule 9, and
(ii) the amount determined in respect of the cannabis products under
(A) section 5 of Schedule 9 if the amount determined under clause (i)(A) is greater than or equal to the amount determined under clause (i)(B), or
(B) section 6 of Schedule 9 in any other case;
(j) in the case of Yukon, the amount that is equal to the greater of
(i) the amount determined in respect of the cannabis products under section 1 of Schedule 10, and
(ii) the amount determined in respect of the cannabis products under section 2 of Schedule 10;
(k) in the case of the Northwest Territories, the amount that is equal to the greater of
(i) the amount determined in respect of the cannabis products under section 1 of Schedule 11, and
(ii) the amount determined in respect of the cannabis products under section 2 of Schedule 11; and
(l) in the case of Nunavut, the amount that is equal to the total of
(i) the amount that is the greater of
(A) the amount determined in respect of the cannabis products under section 1 of Schedule 12, and
(B) the amount determined in respect of the cannabis products under section 2 of Schedule 12, and
(ii) the amount determined in respect of the cannabis products under
(A) section 5 of Schedule 12 if the amount determined under clause (i)(A) is greater than or equal to the amount determined under clause (i)(B), or
(B) section 6 of Schedule 12 in any other case.
Subsection 158.22(1) of Act — prescribed circumstances
6 (1) For the purposes of subsection 158.22(1) of the Act, a duty in respect of a specified province is imposed under that subsection on imported cannabis products if the person that is liable under subsection 158.22(2) of the Act to pay the duty is resident in the specified province.
Residence
(2) For the purposes of subsection (1), a person is deemed to be resident in a province if the person is deemed under section 132.1 of the Excise Tax Act to be resident in that province for the purposes of Part IX of that Act.
Subsection 158.22(1) of Act — calculation of duty
(3) For the purposes of subsection 158.22(1) of the Act, the amount of duty imposed under that subsection in respect of imported cannabis products and in respect of a specified province is determined as follows:
(a) in the case of Ontario, the amount that is equal to the total of
(i) the amount that is the greater of
(A) the amount determined in respect of the cannabis products under section 1 of Schedule 1, and
(B) the amount determined in respect of the cannabis products under section 3 of Schedule 1, and
(ii) the amount determined in respect of the cannabis products under section 7 of Schedule 1;
(b) in the case of Quebec, the amount that is equal to the greater of
(i) the amount determined in respect of the cannabis products under section 1 of Schedule 2, and
(ii) the amount determined in respect of the cannabis products under section 3 of Schedule 2;
(c) in the case of Nova Scotia, the amount that is equal to the greater of
(i) the amount determined in respect of the cannabis products under section 1 of Schedule 3, and
(ii) the amount determined in respect of the cannabis products under section 3 of Schedule 3;
(d) in the case of New Brunswick, the amount that is equal to the total of
(i) the amount that is the greater of
(A) the amount determined in respect of the cannabis products under section 1 of Schedule 4, and
(B) the amount determined in respect of the cannabis products under section 3 of Schedule 4, and
(ii) the amount determined in respect of the cannabis products under section 7 of Schedule 4;
(e) in the case of British Columbia, the amount that is equal to the greater of
(i) the amount determined in respect of the cannabis products under section 1 of Schedule 5, and
(ii) the amount determined in respect of the cannabis products under section 3 of Schedule 5;
(f) in the case of Prince Edward Island, the amount that is equal to the total of
(i) the amount that is the greater of
(A) the amount determined in respect of the cannabis products under section 1 of Schedule 6, and
(B) the amount determined in respect of the cannabis products under section 3 of Schedule 6, and
(ii) the amount determined in respect of the cannabis products under section 7 of Schedule 6;
(g) in the case of Alberta, the amount that is equal to the total of
(i) the amount that is the greater of
(A) the amount determined in respect of the cannabis products under section 1 of Schedule 7, and
(B) the amount determined in respect of the cannabis products under section 3 of Schedule 7, and
(ii) the amount determined in respect of the cannabis products under section 7 of Schedule 7;
(h) in the case of Saskatchewan, the amount that is equal to the total of
(i) the amount that is the greater of
(A) the amount determined in respect of the cannabis products under section 1 of Schedule 8, and
(B) the amount determined in respect of the cannabis products under section 3 of Schedule 8, and
(ii) the amount determined in respect of the cannabis products under section 7 of Schedule 8;
(i) in the case of Newfoundland and Labrador, the amount that is equal to the total of
(i) the amount that is the greater of
(A) the amount determined in respect of the cannabis products under section 1 of Schedule 9, and
(B) the amount determined in respect of the cannabis products under section 3 of Schedule 9, and
(ii) the amount determined in respect of the cannabis products under section 7 of Schedule 9;
(j) in the case of Yukon, the amount that is equal to the greater of
(i) the amount determined in respect of the cannabis products under section 1 of Schedule 10, and
(ii) the amount determined in respect of the cannabis products under section 3 of Schedule 10;
(k) in the case of the Northwest Territories, the amount that is equal to the greater of
(i) the amount determined in respect of the cannabis products under section 1 of Schedule 11, and
(ii) the amount determined in respect of the cannabis products under section 3 of Schedule 11; and
(l) in the case of Nunavut, the amount that is equal to the total of
(i) the amount that is the greater of
(A) the amount determined in respect of the cannabis products under section 1 of Schedule 12, and
(B) the amount determined in respect of the cannabis products under section 3 of Schedule 12, and
(ii) the amount determined in respect of the cannabis products under section 7 of Schedule 12.
Subsection 158.25(2) of Act — prescribed circumstances
7 (1) For the purposes of subsection 158.25(2) of the Act, a duty in respect of a specified province is imposed under that subsection on cannabis products if the location of the cannabis products at the particular time referred to in that subsection is in the specified province.
Subsection 158.26(2) of Act — prescribed circumstances
(2) For the purposes of subsection 158.26(2) of the Act, a duty in respect of a specified province is imposed under that subsection on cannabis products that cannot be accounted for if the last known location of the cannabis products before the particular time referred to in that subsection is in the specified province.
Subsections 158.25(2) and 158.26(2) of Act — calculation of duty
(3) For the purposes of subsections 158.25(2) and 158.26(2) of the Act, the amount of duty imposed under those subsections in respect of cannabis products and a specified province is determined as follows:
(a) in the case of Ontario, the amount that is equal to the total of
(i) the amount that is the greater of
(A) the amount determined in respect of the cannabis products under section 1 of Schedule 1, and
(B) the amount determined in respect of the cannabis products under section 4 of Schedule 1, and
(ii) the amount determined in respect of the cannabis products under section 8 of Schedule 1;
(b) in the case of Quebec, the amount that is equal to the greater of
(i) the amount determined in respect of the cannabis products under section 1 of Schedule 2, and
(ii) the amount determined in respect of the cannabis products under section 4 of Schedule 2;
(c) in the case of Nova Scotia, the amount that is equal to the greater of
(i) the amount determined in respect of the cannabis products under section 1 of Schedule 3, and
(ii) the amount determined in respect of the cannabis products under section 4 of Schedule 3;
(d) in the case of New Brunswick, the amount that is equal to the total of
(i) the amount that is the greater of
(A) the amount determined in respect of the cannabis products under section 1 of Schedule 4, and
(B) the amount determined in respect of the cannabis products under section 4 of Schedule 4, and
(ii) the amount determined in respect of the cannabis products under section 8 of Schedule 4;
(e) in the case of British Columbia, the amount that is equal to the greater of
(i) the amount determined in respect of the cannabis products under section 1 of Schedule 5, and
(ii) the amount determined in respect of the cannabis products under section 4 of Schedule 5;
(f) in the case of Prince Edward Island, the amount that is equal to the total of
(i) the amount that is the greater of
(A) the amount determined in respect of the cannabis products under section 1 of Schedule 6, and
(B) the amount determined in respect of the cannabis products under section 4 of Schedule 6, and
(ii) the amount determined in respect of the cannabis products under section 8 of Schedule 6;
(g) in the case of Alberta, the amount that is equal to the total of
(i) the amount that is the greater of
(A) the amount determined in respect of the cannabis products under section 1 of Schedule 7, and
(B) the amount determined in respect of the cannabis products under section 4 of Schedule 7, and
(ii) the amount determined in respect of the cannabis products under section 8 of Schedule 7;
(h) in the case of Saskatchewan, the amount that is equal to the total of
(i) the amount that is the greater of
(A) the amount determined in respect of the cannabis products under section 1 of Schedule 8, and
(B) the amount determined in respect of the cannabis products under section 4 of Schedule 8, and
(ii) the amount determined in respect of the cannabis products under section 8 of Schedule 8;
(i) in the case of Newfoundland and Labrador, the amount that is equal to the total of
(i) the amount that is the greater of
(A) the amount determined in respect of the cannabis products under section 1 of Schedule 9, and
(B) the amount determined in respect of the cannabis products under section 4 of Schedule 9, and
(ii) the amount determined in respect of the cannabis products under section 8 of Schedule 9;
(j) in the case of Yukon, the amount that is equal to the greater of
(i) the amount determined in respect of the cannabis products under section 1 of Schedule 10, and
(ii) the amount determined in respect of the cannabis products under section 4 of Schedule 10;
(k) in the case of the Northwest Territories, the amount that is equal to the greater of
(i) the amount determined in respect of the cannabis products under section 1 of Schedule 11, and
(ii) the amount determined in respect of the cannabis products under section 4 of Schedule 11; and
(l) in the case of Nunavut, the amount that is equal to the total of
(i) the amount that is the greater of
(A) the amount determined in respect of the cannabis products under section 1 of Schedule 12, and
(B) the amount determined in respect of the cannabis products under section 4 of Schedule 12, and
(ii) the amount determined in respect of the cannabis products under section 8 of Schedule 12.
Prescribed specified provinces — offences
8 For the purposes of subparagraph (i) of the description of C in paragraph 218.1(2)(a) of the Act and subparagraph (i) of the description of C in paragraph 218.1(3)(a) of the Act, the listed specified provinces are prescribed.
Prescribed specified provinces — penalties
9 For the purposes of paragraph (a) of the description of C in section 233.1 of the Act, paragraph (a) of the description of C in section 234.1 of the Act and subparagraph 238.1(2)(b)(iii) of the Act, the listed specified provinces are prescribed.
SCHEDULE 1
(Section 1 and paragraphs 3(a), 5(2)(a), 6(3)(a) and 7(3)(a))
Additional Cannabis Duty in respect of Ontario
1 Any cannabis product produced in Canada or imported: the amount equal to the total of
(a) $0.75 per gram of flowering material included in the cannabis product or used in the production of the cannabis product,
(b) $0.225 per gram of non-flowering material included in the cannabis product or used in the production of the cannabis product,
(c) $0.75 per viable seed included in the cannabis product or used in the production of the cannabis product, and
(d) $0.75 per vegetative cannabis plant included in the cannabis product or used in the production of the cannabis product.
2 Any cannabis product produced in Canada: the amount obtained by multiplying the dutiable amount for the cannabis product by 7.5%.
3 Any imported cannabis product: the amount obtained by multiplying the value of the cannabis product by 7.5%.
4 Any cannabis product taken for use or unaccounted for: the amount obtained by multiplying the fair market value of the cannabis product by 7.5%.
5 Any cannabis product produced in Canada: the amount obtained by multiplying the base amount for the cannabis product and for Ontario by 3.9%.
6 Any cannabis product produced in Canada: the amount obtained by multiplying the dutiable amount for the cannabis product by 3.9%.
7 Any imported cannabis product: the amount obtained by multiplying the value of the cannabis product by 3.9%.
8 Any cannabis product taken for use or unaccounted for: the amount obtained by multiplying the fair market value of the cannabis product by 3.9%.
SCHEDULE 2
(Paragraphs 3(b), 5(2)(b), 6(3)(b) and 7(3)(b))
Additional Cannabis Duty in respect of Quebec
1 Any cannabis product produced in Canada or imported: the amount equal to the total of
(a) $0.75 per gram of flowering material included in the cannabis product or used in the production of the cannabis product,
(b) $0.225 per gram of non-flowering material included in the cannabis product or used in the production of the cannabis product,
(c) $0.75 per viable seed included in the cannabis product or used in the production of the cannabis product, and
(d) $0.75 per vegetative cannabis plant included in the cannabis product or used in the production of the cannabis product.
2 Any cannabis product produced in Canada: the amount obtained by multiplying the dutiable amount for the cannabis product by 7.5%.
3 Any imported cannabis product: the amount obtained by multiplying the value of the cannabis product by 7.5%.
4 Any cannabis product taken for use or unaccounted for: the amount obtained by multiplying the fair market value of the cannabis product by 7.5%.
SCHEDULE 3
(Paragraphs 3(c), 5(2)(c), 6(3)(c) and 7(3)(c))
Additional Cannabis Duty in respect of Nova Scotia
1 Any cannabis product produced in Canada or imported: the amount equal to the total of
(a) $0.75 per gram of flowering material included in the cannabis product or used in the production of the cannabis product,
(b) $0.225 per gram of non-flowering material included in the cannabis product or used in the production of the cannabis product,
(c) $0.75 per viable seed included in the cannabis product or used in the production of the cannabis product, and
(d) $0.75 per vegetative cannabis plant included in the cannabis product or used in the production of the cannabis product.
2 Any cannabis product produced in Canada: the amount obtained by multiplying the dutiable amount for the cannabis product by 7.5%.
3 Any imported cannabis product: the amount obtained by multiplying the value of the cannabis product by 7.5%.
4 Any cannabis product taken for use or unaccounted for: the amount obtained by multiplying the fair market value of the cannabis product by 7.5%.
SCHEDULE 4
(Section 1 and paragraphs 3(d), 5(2)(d), 6(3)(d) and 7(3)(d))
Additional Cannabis Duty in respect of New Brunswick
1 Any cannabis product produced in Canada or imported: the amount equal to the total of
(a) $0.75 per gram of flowering material included in the cannabis product or used in the production of the cannabis product,
(b) $0.225 per gram of non-flowering material included in the cannabis product or used in the production of the cannabis product,
(c) $0.75 per viable seed included in the cannabis product or used in the production of the cannabis product, and
(d) $0.75 per vegetative cannabis plant included in the cannabis product or used in the production of the cannabis product.
2 Any cannabis product produced in Canada: the amount obtained by multiplying the dutiable amount for the cannabis product by 7.5%.
3 Any imported cannabis product: the amount obtained by multiplying the value of the cannabis product by 7.5%.
4 Any cannabis product taken for use or unaccounted for: the amount obtained by multiplying the fair market value of the cannabis product by 7.5%.
5 Any cannabis product produced in Canada: the amount obtained by multiplying the base amount for the cannabis product and for New Brunswick by 0%.
6 Any cannabis product produced in Canada: the amount obtained by multiplying the dutiable amount for the cannabis product by 0%.
7 Any imported cannabis product: the amount obtained by multiplying the value of the cannabis product by 0%.
8 Any cannabis product taken for use or unaccounted for: the amount obtained by multiplying the fair market value of the cannabis product by 0%.
SCHEDULE 5
(Paragraphs 3(e), 5(2)(e), 6(3)(e) and 7(3)(e))
Additional Cannabis Duty in respect of British Columbia
1 Any cannabis product produced in Canada or imported: the amount equal to the total of
(a) $0.75 per gram of flowering material included in the cannabis product or used in the production of the cannabis product,
(b) $0.225 per gram of non-flowering material included in the cannabis product or used in the production of the cannabis product,
(c) $0.75 per viable seed included in the cannabis product or used in the production of the cannabis product, and
(d) $0.75 per vegetative cannabis plant included in the cannabis product or used in the production of the cannabis product.
2 Any cannabis product produced in Canada: the amount obtained by multiplying the dutiable amount for the cannabis product by 7.5%.
3 Any imported cannabis product: the amount obtained by multiplying the value of the cannabis product by 7.5%.
4 Any cannabis product taken for use or unaccounted for: the amount obtained by multiplying the fair market value of the cannabis product by 7.5%.
SCHEDULE 6
(Section 1 and paragraphs 3(f), 5(2)(f), 6(3)(f) and 7(3)(f))
Additional Cannabis Duty in respect of Prince Edward Island
1 Any cannabis product produced in Canada or imported: the amount equal to the total of
(a) $0.75 per gram of flowering material included in the cannabis product or used in the production of the cannabis product,
(b) $0.225 per gram of non-flowering material included in the cannabis product or used in the production of the cannabis product,
(c) $0.75 per viable seed included in the cannabis product or used in the production of the cannabis product, and
(d) $0.75 per vegetative cannabis plant included in the cannabis product or used in the production of the cannabis product.
2 Any cannabis product produced in Canada: the amount obtained by multiplying the dutiable amount for the cannabis product by 7.5%.
3 Any imported cannabis product: the amount obtained by multiplying the value of the cannabis product by 7.5%.
4 Any cannabis product taken for use or unaccounted for: the amount obtained by multiplying the fair market value of the cannabis product by 7.5%.
5 Any cannabis product produced in Canada: the amount obtained by multiplying the base amount for the cannabis product and for Prince Edward Island by 0%.
6 Any cannabis product produced in Canada: the amount obtained by multiplying the dutiable amount for the cannabis product by 0%.
7 Any imported cannabis product: the amount obtained by multiplying the value of the cannabis product by 0%.
8 Any cannabis product taken for use or unaccounted for: the amount obtained by multiplying the fair market value of the cannabis product by 0%.
SCHEDULE 7
(Section 1 and paragraphs 3(g), 5(2)(g), 6(3)(g) and 7(3)(g))
Additional Cannabis Duty in respect of Alberta
1 Any cannabis product produced in Canada or imported: the amount equal to the total of
(a) $0.75 per gram of flowering material included in the cannabis product or used in the production of the cannabis product,
(b) $0.225 per gram of non-flowering material included in the cannabis product or used in the production of the cannabis product,
(c) $0.75 per viable seed included in the cannabis product or used in the production of the cannabis product, and
(d) $0.75 per vegetative cannabis plant included in the cannabis product or used in the production of the cannabis product.
2 Any cannabis product produced in Canada: the amount obtained by multiplying the dutiable amount for the cannabis product by 7.5%.
3 Any imported cannabis product: the amount obtained by multiplying the value of the cannabis product by 7.5%.
4 Any cannabis product taken for use or unaccounted for: the amount obtained by multiplying the fair market value of the cannabis product by 7.5%.
5 Any cannabis product produced in Canada: the amount obtained by multiplying the base amount for the cannabis product and for Alberta by 16.8%.
6 Any cannabis product produced in Canada: the amount obtained by multiplying the dutiable amount for the cannabis product by 16.8%.
7 Any imported cannabis product: the amount obtained by multiplying the value of the cannabis product by 16.8%.
8 Any cannabis product taken for use or unaccounted for: the amount obtained by multiplying the fair market value of the cannabis product by 16.8%.
SCHEDULE 8
(Section 1 and paragraphs 3(h), 5(2)(h), 6(3)(h) and 7(3)(h))
Additional Cannabis Duty in respect of Saskatchewan
1 Any cannabis product produced in Canada or imported: the amount equal to the total of
(a) $0.75 per gram of flowering material included in the cannabis product or used in the production of the cannabis product,
(b) $0.225 per gram of non-flowering material included in the cannabis product or used in the production of the cannabis product,
(c) $0.75 per viable seed included in the cannabis product or used in the production of the cannabis product, and
(d) $0.75 per vegetative cannabis plant included in the cannabis product or used in the production of the cannabis product.
2 Any cannabis product produced in Canada: the amount obtained by multiplying the dutiable amount for the cannabis product by 7.5%.
3 Any imported cannabis product: the amount obtained by multiplying the value of the cannabis product by 7.5%.
4 Any cannabis product taken for use or unaccounted for: the amount obtained by multiplying the fair market value of the cannabis product by 7.5%.
5 Any cannabis product produced in Canada: the amount obtained by multiplying the base amount for the cannabis product and for Saskatchewan by 6.45%.
6 Any cannabis product produced in Canada: the amount obtained by multiplying the dutiable amount for the cannabis product by 6.45%.
7 Any imported cannabis product: the amount obtained by multiplying the value of the cannabis product by 6.45%.
8 Any cannabis product taken for use or unaccounted for: the amount obtained by multiplying the fair market value of the cannabis product by 6.45%.
SCHEDULE 9
(Section 1 and paragraphs 3(i), 5(2)(i), 6(3)(i) and 7(3)(i))
Additional Cannabis Duty in respect of Newfoundland and Labrador
1 Any cannabis product produced in Canada or imported: the amount equal to the total of
(a) $0.75 per gram of flowering material included in the cannabis product or used in the production of the cannabis product,
(b) $0.225 per gram of non-flowering material included in the cannabis product or used in the production of the cannabis product,
(c) $0.75 per viable seed included in the cannabis product or used in the production of the cannabis product, and
(d) $0.75 per vegetative cannabis plant included in the cannabis product or used in the production of the cannabis product.
2 Any cannabis product produced in Canada: the amount obtained by multiplying the dutiable amount for the cannabis product by 7.5%.
3 Any imported cannabis product: the amount obtained by multiplying the value of the cannabis product by 7.5%.
4 Any cannabis product taken for use or unaccounted for: the amount obtained by multiplying the fair market value of the cannabis product by 7.5%.
5 Any cannabis product produced in Canada: the amount obtained by multiplying the base amount for the cannabis product and for Newfoundland and Labrador by 0%.
6 Any cannabis product produced in Canada: the amount obtained by multiplying the dutiable amount for the cannabis product by 0%.
7 Any imported cannabis product: the amount obtained by multiplying the value of the cannabis product by 0%.
8 Any cannabis product taken for use or unaccounted for: the amount obtained by multiplying the fair market value of the cannabis product by 0%.
SCHEDULE 10
(Paragraphs 3(j), 5(2)(j), 6(3)(j) and 7(3)(j))
Additional Cannabis Duty in respect of Yukon
1 Any cannabis product produced in Canada or imported: the amount equal to the total of
(a) $0.75 per gram of flowering material included in the cannabis product or used in the production of the cannabis product,
(b) $0.225 per gram of non-flowering material included in the cannabis product or used in the production of the cannabis product,
(c) $0.75 per viable seed included in the cannabis product or used in the production of the cannabis product, and
(d) $0.75 per vegetative cannabis plant included in the cannabis product or used in the production of the cannabis product.
2 Any cannabis product produced in Canada: the amount obtained by multiplying the dutiable amount for the cannabis product by 7.5%.
3 Any imported cannabis product: the amount obtained by multiplying the value of the cannabis product by 7.5%.
4 Any cannabis product taken for use or unaccounted for: the amount obtained by multiplying the fair market value of the cannabis product by 7.5%.
SCHEDULE 11
(Paragraphs 3(k), 5(2)(k), 6(3)(k) and 7(3)(k))
Additional Cannabis Duty in respect of the Northwest Territories
1 Any cannabis product produced in Canada or imported: the amount equal to the total of
(a) $0.75 per gram of flowering material included in the cannabis product or used in the production of the cannabis product,
(b) $0.225 per gram of non-flowering material included in the cannabis product or used in the production of the cannabis product,
(c) $0.75 per viable seed included in the cannabis product or used in the production of the cannabis product, and
(d) $0.75 per vegetative cannabis plant included in the cannabis product or used in the production of the cannabis product.
2 Any cannabis product produced in Canada: the amount obtained by multiplying the dutiable amount for the cannabis product by 7.5%.
3 Any imported cannabis product: the amount obtained by multiplying the value of the cannabis product by 7.5%.
4 Any cannabis product taken for use or unaccounted for: the amount obtained by multiplying the fair market value of the cannabis product by 7.5%.
SCHEDULE 12
(Section 1 and paragraphs 3(l), 5(2)(l), 6(3)(l) and 7(3)(l))
Additional Cannabis Duty in respect of Nunavut
1 Any cannabis product produced in Canada or imported: the amount equal to the total of
(a) $0.75 per gram of flowering material included in the cannabis product or used in the production of the cannabis product,
(b) $0.225 per gram of non-flowering material included in the cannabis product or used in the production of the cannabis product,
(c) $0.75 per viable seed included in the cannabis product or used in the production of the cannabis product, and
(d) $0.75 per vegetative cannabis plant included in the cannabis product or used in the production of the cannabis product.
2 Any cannabis product produced in Canada: the amount obtained by multiplying the dutiable amount for the cannabis product by 7.5%.
3 Any imported cannabis product: the amount obtained by multiplying the value of the cannabis product by 7.5%.
4 Any cannabis product taken for use or unaccounted for: the amount obtained by multiplying the fair market value of the cannabis product by 7.5%.
5 Any cannabis product produced in Canada: the amount obtained by multiplying the base amount for the cannabis product and for Nunavut by 19.3%.
6 Any cannabis product produced in Canada: the amount obtained by multiplying the dutiable amount for the cannabis product by 19.3%.
7 Any imported cannabis product: the amount obtained by multiplying the value of the cannabis product by 19.3%.
8 Any cannabis product taken for use or unaccounted for: the amount obtained by multiplying the fair market value of the cannabis product by 19.3%.
Amendments
2 Paragraph 2(a) of the Excise Duties on Cannabis Regulations, as enacted by section 1, is replaced by the following:
(a) a test kit, as defined in subsection 1(2) of the Cannabis Regulations, for which a registration number has been issued, but not cancelled, under those Regulations; and
Coming into Force
3 Sections 1, 3 to 7 and 9 of the Excise Duties on Cannabis Regulations and Schedules 1 to 12 to those Regulations, as made by section 1, are deemed to have come into force on Announcement Date except that, before October 17, 2018, section 9 of those Regulations, as made by section 1, is to be read without reference to "paragraph (a) of the description of C in section 234.1 of the Act".
4 Section 2 of the Excise Duties on Cannabis Regulations, as made by section 1, is deemed to have come into force on June 21, 2018.
5 Section 2 comes into force, or is deemed to have come into force, on October 17, 2018.
PART 2
Draft Amendments to the Regulations Respecting the Possession of Tobacco Products or Cannabis Products That Are Not Stamped
6 The Regulations Respecting the Possession of Tobacco Products or Cannabis Products That Are Not Stamped are amended by adding the following after section 1.2:
1.3 For the purposes of paragraph 158.11(6)(a) of the Excise Act, 2001, a person may possess cannabis products in a particular specified province that are not stamped to indicate that additional cannabis duty in respect of the particular specified province has been paid
(a) if the person holds a licence for sale for medical purposes issued under section 62 of the Cannabis Act; or
(b) if the person is authorized by another province to sell cannabis products in the other province and, if the other province is a specified province, the cannabis products are stamped to indicate that additional cannabis duty in respect of the other province has been paid.
7 Section 6 comes into force, or is deemed to have come into force, on October 17, 2018.
PART 3
Draft Amendments to the Stamping and Marking of Tobacco and Cannabis Products Regulations
8 Subsection 4(3) of the Stamping and Marking of Tobacco and Cannabis Products Regulations is replaced by the following:
(3) For the purposes of paragraph 158.05(2)(c) of the Act, the following persons are prescribed:
(a) a person that transports a cannabis excise stamp on behalf of a person described in paragraph 158.05(2)(a) or (b) of the Act; and
(b) a person that has in their possession cannabis excise stamps only for the purpose of applying adhesive to the stamps on behalf of the cannabis licensee to which the stamps are issued.
9 Section 8 is deemed to have come into force on June 21, 2018.
PART 4
Draft Amendments to the Credit for Provincial Relief (HST) Regulations
10 The definition Ontario regulation in section 1 of the Credit for Provincial Relief (HST) Regulations is replaced by the following:
Ontario regulation means Ontario Regulation 317/10 (Rebates for First Nations in Ontario), made under the Retail Sales Tax Act, R.S.O. 1990, c. R.31, as that regulation read on the day on which section 2 of Ontario Regulation 382/18, made under that Act, comes into force. (règlement de l'Ontario)
11 Section 10 comes into force, or is deemed to have come into force, on the day that is the later of October 17, 2018 and the day on which section 2 of Ontario Regulation 382/18, made under the Retail Sales Tax Act, R.S.O. 1990, c. R.31, comes into force.
PART 5
Draft Amendments to the Excise Act, 2001
12 (1) The Excise Act, 2001 is amended by adding the following after section 2:
Dutiable amount — consideration
2.1 The following rules apply in determining an amount of consideration for the purposes of the definition dutiable amount in section 2:
(a) if a provision of Part IX of the Excise Tax Act deems the consideration, or part of the consideration, for a supply not to be consideration for the supply, a supply to be made for no consideration or a supply not to have been made by a person, that deeming does not apply for that determination; and
(b) subsection 155(1) of that Act is to be read without reference to "and the recipient of the supply is not a registrant who is acquiring the property or service for consumption, use or supply exclusively in the course of commercial activities of the recipient,".
(2) Subsection (1) is deemed to have come into force on Announcement Date.
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