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The Liberal’s third federal budget this afternoon helped further clear the smoke surrounding how legal cannabis will be taxed.
Potential revenue the federal government stands to make off taxation was not revealed in today's budget but tax specifics regarding certain cannabis products were announced.
The federal government announced today that taxes will not be applied to low-THC cannabidiol oils and other low-THC therapeutic products as well as prescription drugs derived from cannabis.
For those selling non-pharmaceutical cannabis, taxes for federally-licensed producers will be set at a flat rate based on the quantity of cannabis in a given product or based on a percentage of the sale price of the cannabis product depending on which is higher.
The federal Liberals also announced the possibility of creating a rebate program that would retroactively reimburse patients for taxes already paid on cannabis-based pharmaceuticals.
However, they did not specify a timeline or dollar amount.
The budget also stipulated $62.5-million on public education campaigns on the dangers of drug use and $10-million on research, including assessing the impact of legalization on mental health.
Specific legalization dates remain unclear, but the original date of July 1 will no longer be met with the new date projected to be in late Summer or early Fall.
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