British Columbia, and all other provinces and territories, reached an agreement with the Federal government on Monday on revenue flow when cannabis becomes legalized.
Starting July 1st, 2018 (Canada Day), 75% of the accumulated tax revenue from recreational marijuana will go back into the province.
In a statement, Finance Minister Carole James believes this agreement is a ‘win’ for BC as the province may be stuck with the biggest of bills.
“We negotiated an agreement for BC that means the majority of cannabis revenue will flow to the provinces so we can invest in programs to keep people safe and remove the criminal element from cannabis.”
She adds the money will also be used to protect children and youth, raise health awareness, and to make sure consumers have a safe product.
In addition, the Federal Liberals have agreed to a $100 million cap on revenue, and anything exceeding that amount would be distributed among the provinces.
This is a similar to regulations on tobacco and alcohol taxes.
Earlier this year, BC took nearly 50,000 public submissions and on cannabis legalization and what rules should be implemented.
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