WHY IS LEGAL CANNABIS SO EXPENSIVE?
.
Ever wonder why your wallet is so much lighter after buying your favourite cannabis products? Unfortunately it's because Canada excessively taxes cannabis products at every stage of the production, distribution, and retail process. These exorbitant taxes are stifling the growth and sustainability of the legal cannabis industry, harming businesses, consumers, and the economy as a whole. The legalization of cannabis in Canada was intended to create a regulated market that prioritizes public health, safety, and social equity. However, the current taxation framework undermines these objectives by driving up the cost of legal cannabis products to unsustainable levels. As a result, consumers are faced with inflated prices, while legal businesses struggle to compete with the unregulated black market. The consequences of overtaxation are far-reaching and detrimental. Small and medium-sized cannabis businesses, which are the backbone of the industry, are disproportionately affected, with many facing financial hardship or even closure due to slim profit margins and escalating operating costs. Job losses, reduced investment, and stifled innovation further compound the economic toll of high cannabis taxes. Moreover, overtaxation exacerbates social inequities by limiting access to legal cannabis products, particularly for low-income individuals who may already face financial barriers. The high cost of legal cannabis drives consumers toward cheaper alternatives in the illicit market, where product quality and safety cannot be guaranteed. At FAIR Cannabis, we believe it's time to take action and fight for lower cannabis taxes. By advocating for a more reasonable and balanced taxation framework, we can support the growth and sustainability of the legal cannabis industry, promote economic prosperity, and ensure equitable access to safe and regulated cannabis products for all Canadians. Join us in our campaign to lower cannabis taxes and create a more inclusive cannabis landscape in Canada. Together, we can make a difference and pave the way for a brighter future for the cannabis industry and its stakeholders.
IT'S TIME FOR FAIR CANNABIS TAXES.
High cannabis taxes hurt all Canadians. Here's a few reasons lowering cannabis taxes is a good idea.
Economic Impact: High taxes on cannabis contribute to inflated prices for consumers, reducing affordability and limiting access to legal products. This can drive consumers toward the illicit market, undermining the goals of legalization and reducing tax revenue for governments.
Business Viability: Over-taxation squeezes profit margins for cannabis businesses, making it difficult for them to operate sustainably and remain profitable. Many companies, particularly small and medium-sized enterprises, may struggle to stay afloat or may be forced out of business altogether.
Innovation and Investment: High taxes deter investment in the legal cannabis industry and stifle innovation. Investors are less inclined to commit capital to businesses that face significant financial hurdles due to taxation, limiting growth and innovation within the sector.
Job Losses: The closure of cannabis businesses due to over-taxation results in job losses across the industry, impacting employees, suppliers, and ancillary service providers. This can have ripple effects on local economies and communities.
Social Equity: High taxes disproportionately affect lower-income individuals who may already struggle with affordability. This exacerbates socioeconomic disparities and undermines efforts to promote social equity within the cannabis industry.
Market Competitiveness: Excessive taxation puts legal cannabis businesses at a disadvantage compared to illicit operators who do not face the same tax burden. This hampers the ability of legal businesses to compete effectively and erodes their market share.
Consumer Access to Medical Cannabis: High taxes on cannabis can pose barriers to access for medical cannabis patients who rely on cannabis for therapeutic purposes. Affordability issues may force patients to seek alternatives or forego treatment altogether, compromising their health and well-being.
Legal Compliance: Excessive taxation creates incentives for tax evasion and illicit market activity among businesses and consumers seeking to avoid high taxes. This undermines the goals of regulation and enforcement efforts aimed at ensuring compliance with cannabis laws.
International Competitiveness: Canada's legal cannabis industry competes in a global market, and high taxes can put Canadian businesses at a disadvantage compared to competitors in jurisdictions with lower tax rates. This limits the industry's ability to expand exports and capitalize on international opportunities.
Overall, the overtaxation of cannabis has wide-ranging negative consequences for consumers, businesses, public health, and economic development in Canada. Addressing this issue is crucial to fostering a sustainable and equitable cannabis industry that benefits all stakeholders.
PARTNERS.
Please support our FAIR Cannabis partners. These companies are dedicated to making positive change in the cannabis community.
Become a partner to support FAIR Cannabis!
NEWS.
