The federal government proposed a new excise duty framework that imposes duties on cannabis products on November 10, 2017. A Bill C-45 (referred to as the “Cannabis Act”), “an Act respecting cannabis and to amend the Controlled Drugs and Substances Act, the Criminal Code, and other Acts”, was introduced in Parliament on April 13, 2017, outlining the framework for legal possession, production, distribution, and sale of cannabis. All these measures are still pending Parliamentary approval. Canadian stakeholders, businesses and the public are invited to submit feedback as part of the Government of Canada’s consultation on the cannabis duty framework on or before December 7, 2017.

A new excise duty framework on cannabis is proposed to be introduced as part of the existing Excise Act, 2001, the Act that currently applies excise duties on tobacco, wine, and spirits. The proposed duty would also apply to all cannabis products available for legal sale, including fresh and dried cannabis, cannabis oils, as well as seeds and seedlings for home cultivation. Cannabis products that are produced by an individual or a designated grower for an individual’s own medical purposes according to the proposed Cannabis Act will not be subject to the excise duty. Seeds and seedlings used in this production will be subject to the duty. Tourists visiting the country will be allowed to smoke pot at their pleasure but rules banning the import and export of marijuana will remain in force.

The Cannabis Act is proposed to come into force on a day or days to be fixed by order of the Governor in Council. Subject to Parliamentary approval and Royal Assent, the Government has indicated that this is proposed to be within July 2018. Under the proposed Cannabis Act, it will be illegal to import into or export from Canada cannabis and cannabis products except under very specific circumstances.