Industry Reform Urged by the Cannabis Council of Canada

Image | adobe.stock/Victoria Schaal

With the departure of former Prime Minister Justin Trudeau, Canada is going through changes in leadership following the recent election where Mark Carney won to become the new Prime Minister of the country (1). Following the election, the Cannabis Council of Canada (1) is urging for new cannabis reform to “address glaring gaps and shortcomings in the legal cannabis industry.”

Paul McCarthy, president of the Cannabis Council of Canada, expressed in a recent press release (2), “With a new government in office, it’s time for action. The cannabis industry deserves the same attention and support as any sector of our economy.” McCarthy further added, “Canada likes to position itself as a global leader in legal cannabis – but since legalization in 2018, the federal government has failed this industry and the tens of thousands of hardworking Canadians it supports.”

According to Ganjapreneur (1), the Cannabis Council of Canada is interested in updating the framework of cannabis regulations to better align them with current “market realities.” When cannabis was legalized in 2018, it was sold for $10 per gram but is now $3 per gram and there is an excise tax for more than 10% the product’s value or $1 per gram. The Cannabis Council of Canada is (1), “calling on the new government to eliminate the $1 per gram floor and replace it with a 10% ad valorem rate – a fixed percentage based on the value of the goods, as determined by the invoice cost – which was proposed by the Standing Committee on Finance last year.” Additionally, the organization would like to see some reform regarding the illicit cannabis market. Cannabis sales from this side of the industry are 25% and 40% of total sales in the country (1). It was also found that laboratory testing found 94% of illegal cannabis consisted of pesticides and some had traces of Escherichia Coli. To help the industry, the Cannabis Council of Canada would like there to be a public awareness and education campaign focused on the harms of partaking in the illegal cannabis market that is not regulated, illegal product shipments to be intercepted, and unlicensed stores, as well as online sales, to be closed down (1).

The council asked in the press release for a single national excise stamp for cannabis. “However, under the current system, each province and territory requires its own unique cannabis excise stamp. This red tape adds costs and complexity for legal producers distributing products nationwide, placing a significant burden on an industry that is committed to being law-abiding, consumer-focused, and financially viable,” the press release mentioned (2). “The December 2024 Fall Economic Statement signalled the federal government’s intention to adopt a single national stamp. The Cannabis Council of Canada welcomes this signal and urges the government to deliver on that commitment without delay.”

The cannabis industry has assisted strongly in the country’s economic growth by bringing in $43 billion to the national GDP since the plant was legalized in 2018 (1,2). In 2024, the industry brought in $7.4 billion.

A recent survey (1-3) found:

• Almost nine out of ten respondents stated that Canada should grow the economy in new ways
• Similarly, a majority of respondents stated that Canada should seize new opportunities for economic growth
• A majority agreed with eliminating trade barriers between provinces and improving jobs within the country
• 57% of participants see cannabis as important to the country’s economy and 62% stated it could hold a more important role in the future
• 64% stated they were open to the idea of the federal government doing more to support the growth of the cannabis sector
• Among participants ages 18–29, 73% favored a more supportive environment for the growth of the cannabis sector, along with 57% of participants ages 60 and over.

With the strong interest in cannabis, hopefully new cannabis reform will be explored to further expand and grow the industry.

References

1. Branfalt, T. Cannabis Council of Canada calls for industry reforms following election - ganjapreneur https://www.ganjapreneur.com/cannabis-council-of-canada-calls-for-industry-reforms-following-election/?utm_source=newsletter&utm_medium=email&utm_campaign=cannabis_council_of_canada_calls_for_reforms_under_new_government_alabama_parents_sue_over_delayed_medical_cannabis_program_and_more&utm_term=2025-05-01 (accessed May 2, 2025).
2. McCarthy, P. Cannabis Council of Canada congratulates Mark Carney and calls for immediate action to strengthen Canada’s legal cannabis industry https://www.businesswire.com/news/home/20250429571557/en/Cannabis-Council-of-Canada-Congratulates-Mark-Carney-and-Calls-for-Immediate-Action-to-Strengthen-Canadas-Legal-Cannabis-Industry (accessed May 2, 2025).
3. McEvoy, E. Poll surveys Canadians’ views on the economic role of the country’s legal cannabis industry https://www.cannabissciencetech.com/view/poll-surveys-canadians-views-on-the-economic-role-of-the-country-s-legal-cannabis-industry (accessed May 2, 2025).