Feds to give provinces 75 per cent of pot tax revenues, own take capped at $100M
OTTAWA — Canada’s finance ministers struck a deal Monday on how they plan to share tax revenues during the cost-heavy startup phase of a legalized marijuana market — but they also kept their options open, just in case lucrative days lie ahead.
The new agreement will see the federal government give the provinces and territories a 75 per cent share of federal excise tax revenues from the sale of legalized pot, a portion of which will be meted out to cities and towns to help them defray the cost of making cannabis legal across Canada.
Federal Finance Minister Bill Morneau announced the two-year deal after a day-long meeting with his provincial and territorial counterparts.
Ottawa, which intends to legalize recreational cannabis in July, will retain the remaining 25 per cent share to a maximum of $100 million a year, with any balance over and above that limit going to the provinces and territories.