Quebec government raises expected cannabis dividend to CA$88 million

The monopoly cannabis retailer in Quebec expects to contribute 88 million Canadian dollars ($70 million) to provincial coffers in the upcoming 2021-22 fiscal year, according to the newly released provincial budget.

The government-owned and -operated Société québécoise du cannabis (SQDC) previously expected to contribute CA$71 million to provincial coffers.

Quebec also expects the SQDC will contribute more than expected in the current 2020-21 fiscal year.

The provincial government anticipates receiving CA$60 million from the SQDC in the fiscal year ending March 31, 2021, higher than the budgeted CA$50 million.

Revenue from government enterprises such as the SQDC is “essentially the same” as their net results, according to the budget.

The budget notes that the dividend from cannabis sales will be allocated to the province’s Cannabis Sales Revenue Fund.

“Forecast revenues for the Cannabis Sales Revenue Fund are set at CA$164.6 million for 2021-2022, an increase of CA$36.8 million from the 2020-2021 probable revenues,” according to a budget document.

“The variation is due to an increase in revenues from excise duties and SQDC dividends.”

Revenue for the Cannabis Sales Revenue Fund mainly comes from:

  • SQDC dividends.
  • Quebec’s share of the federal excise duty on adult-use cannabis products.

The province allocates Cannabis Sales Revenue Fund revenue to:

  • The elimination of SQDC debt.
  • The Cannabis Prevention and Research Fund.
  • Programs to fight psychoactive substance abuse.