Cannabis cultivators and producers will generally be aware of the two-tier flat tax that applies to the production of cannabis products, such as pre-rolls. That is, a higher tax rate of $0.25 per gram applies to flowering material, while a lower tax rate of $0.075 per gram applies to non-flowering material – putatively on the basis that it is far less potent in terms of cannabinoid content (THC and CBD).
As we wrote in a previous blog post, the Canada Revenue Agency (the “CRA”) has announced a “Coordinated Vaping Duty System” framework to manage the payment, collection, remittance and refund in respect of the additional vaping duty imposed under section 158.58 of the Excise Act.
Since the additional duty came into force on July 1, 2024, the CRA has released further guidance on the framework, including the use of vaping excise stamps and registration obligations within the vaping stamping regime.
