(Please see an important update to this story here.)
British Columbia’s beefed up provincial tax will apply to dried cannabis vaporizers in addition to liquid marijuana vaping products.
Newly proposed legislation would nearly triple the provincial sales tax (PST) on those products to 20%.
The Ministry of Finance confirmed to Marijuana Business Daily that the tax would apply to dried cannabis vaporizers if the legislation is ultimately approved. It previously had not been completely clear whether the tax would apply to dried cannabis vaporizers.
The ministry said other adult-use cannabis products sold through regulated channels, including dried cannabis and extracts, will remain at the 7% PST rate.
Under the legislation, which is aimed at the broader vaping market, “e-substances” include any solid, liquid or gas designed for use in a vaping device.
The tax has faced heavy criticism from within legal business circles for potentially making regulated cannabis products less competitive against those sold in the dominant unregulated market.
Industry group Cannabis Council of Canada said the measure would only serve to strengthen the illicit market.
“We strongly urge the B.C. government to reconsider their PST rate increase,” Cannabis Council Chair Megan McCrae said.
The new rate takes effect Jan. 1, 2020, pending legislative approval and a public comment period.
Edibles, extracts and topical cannabis products will be slowly rolled out starting in mid-December, with wider distribution taking place in 2020.
Matt Lamers is Marijuana Business Daily’s international editor, based near Toronto. He can be reached at firstname.lastname@example.org.