Aiming to discourage youth vaping, Alberta introduced a 20% retail tax on vape products, including cannabis extracts and vaping devices. The tax is modeled on BC’s 20% tax on vape products, which was eventually amended to exempt dry-herb vaporizers. What Alberta will tax and what it will exempt will be revealed in the spring.
- Fire & Flower’s Nathan Mison, chairman of the Alberta Cannabis Council, said this would raise the combined excise tax on REC vape products to 44.3% and argued the new tax would drive buyers away from the legal market.
Alberta Gaming, Liquor and Cannabis announced last week it projected $26M in losses for the 2019-2020 fiscal year. As commentators puzzled over why “legalization was financial bust” for Alberta. Michael J Armstrong noted the loss was isolated to the AGLC alone: “The treasury collects $70 million in [cannabis] tax; [making this a] net gain [of] $44 million.”
National Post, CBC Calgary, Twitter–Michael J Armstrong, Global News