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Trudeau Proposes a $1-a-Gram Tax on Canadian Cannabis

October 5, 2017
Canadian Prime Minister Justin Trudeau addresses the United Nations General Assembly, at U.N. headquarters, Thursday, Sept. 21, 2017. (AP Photo/Mary Altaffer)
Canadian Prime Minister Justin Trudeau has brought forth his most detailed proposal yet for Canada’s impending recreational cannabis market, proposing a tax of one dollar a gram on adult-use cannabis when once recreational sales begin in the summer of 2018.


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The proposal—announced yesterday at a press conference in Ottawa— specifies a dollar-a-gram excise tax on cannabis sold for $10 a gram or less. Cannabis products priced higher than $10 a gram would be subject to a 10% tax. As for how the revenue would be split up, Trudeau said the federal government would split the tax revenue 50-50 with provincial governments.

“Nobody’s mindset on this approach is about bringing in tax revenue,” Trudeau said, specifying that the main point is to defeat the black market and keep everyone safe from illicit dealers.


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Trudeau added that from the beginning, the whole legalization movement came from a public health and safety standpoint, with the PM repeatedly citing the need for a system that will protect “our kids.”

Next up: A December meeting of federal finance ministers to discuss the taxation of cannabis.


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Stay tuned, and for now, here’s full video of Trudeau’s announcement.


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Gage Peake

Gage Peake is a former staff writer for Leafly, where he specialized in data journalism, sports, and breaking news coverage. He's a graduate of the University of Nebraska-Lincoln's College of Journalism and Mass Communications.

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  • drlee

    Does anyone ever get the feeling that when some (not all) politicians discuss cannabis legalization, it looks/sounds a little like they still feel like they’re sacrificing their souls to the devil for the good of their constituents by allowing this all to happen? For the safety of our children. Well, at least it isn’t MY soul. On the flip side, $11 per gram (including tax) sounds like a really smart idea if they can make it work without losing money on the deal. I’ve worked with a lot of disabled folks and $11 would be a stretch for a lot of them, but it’s better than $60/gram.

    • Links2

      Never heard of $60/gram..Is this for pot? I’ve been smoking off and on for a lot of years, never have a seen that money paid for pot.

      • Meister Jager

        maybe for an 1/8 if it is kickass cup winner

    • Turner Kayston

      $11/gram when it costs them between $0.20 – $2.20 /gram to produce, as is today, with the rest being pure profit at the expense of the sick and dying.

      Prohibition prices (because of the illegality and risks) are currently ~ $10/g, so why should it not be $1/gram for legal Cannabis?

  • Robert Senviczki

    na I will still grow my own and pay 0 for tax. I will also know my strain and not buy blind from some LP of the new CCBO. My big question is .What if you buy from an LP or CCBO and the product is crap ( like most of their products) can you get a refund?

  • Knitmygrits

    For you Americans who think we’re SO lucky… We’re not. There are some crushing blows from this in Ontario. Commercial drivers can have ZERO amount at all times in their blood which means they STILL don’t understand that after 4 hours, you’re not stoned or even after 12 hours! Also, ANY G driver found with ANY in their blood can look forward to a $450 ticket and 3 demerit points. Next will be if you are a parent of a minor (18 and under) you won’t be allowed to have any as they will consider it child endangerment. After that, it’ll be teachers and daycare workers. The medical program is getting scrapped next. Understand, he just found a better way to create a more effective prohibition. NO ONE can touch it without some very serious consequences but on the other hand, DRINK AWAY because big booze paid for this law against cannabis.

    • Turner Kayston

      There will be more draconian criminal elements to this new prohibition 2.0, pseudo-legalization, than there is now. It gets even more crazy than that too, especially after watching many of the HESA videos of this sadist government.

  • Jeffrey Simpson

    I think we might have to name the PM ‘Greedy Guts True Dough’. I can buy cannabis flowers in Vancouver for $4 a gram and the retailer is making a profit! If the price goes to $10 + 1$ = $11 a gram – the unlicensed growers will get all the business and will make a good profit if the Feds go this route. Or i can grow the plants myself, indoors, and it will cost me nothing but my time. I like that idea best.

  • Robert Jason Swailes

    Yeah right Trudeau, this was always about tax just as much as it was about the “black market” happy as I am that it’s becoming legal it’s a GOLDEN opportunity to milk every adult Canadian who enjoys Cannabis for what the government can. Just like tobbaco and alcohol, it just keeps going up and up. So this should mean, if, you don’t care about profit…that the Tax should also never go up.

  • Linda Vee Sado


  • Robert Gerus

    He a fucken idiot dollar a gram go fuck yourself you the black market now with prices like that who the hell needs you Trudope and stupid Wang.