‘Canadian cannabis is in peril’: Industry leaders call on feds to help
Canadian hashish business house owners are calling for assist from the federal authorities, saying excessive tax charges and strict guidelines have left their companies struggling to outlive.
Five Canadian hashish sector CEOs joined a press convention, organized by the Cannabis Council of Canada, Wednesday on Parliament Hill to debate the extent of layoffs and facility closures within the trade.
“You’re hearing from producers here today because we as growers and manufacturers sit at the heart of the cannabis supply chain,” mentioned President and CEO of British Columbia firm Pure Sunfarms, Mandesh Dosanjh. “We need to be healthy in order for the whole system to thrive but that’s not reality. Producers stand here in peril. Canadian cannabis is in peril.”
Canopy Growth Corp., one in every of Canada’s largest hashish producers, lately introduced it will be shedding 800 staff – 35 per cent of its workforce — and shutting one in every of its services in Smiths Falls, Ont.
High excise taxes have been one of many largest challenges for companies, the CEOs mentioned in Wednesday’s press convention, including the two.3 per cent excise tax price has turn into too pricey, significantly after a 12 months of elevated inflation charges.
Jonathan Wilson, CEO of New Brunswick firm Crystal Cure, referred to as for the federal authorities to rethink the tax price as he says it is not solely pushing away present companies however eliminating the trail for brand new producers to enter and develop the sector.
“It’s not only a significant burden for producers like us, but it’s a barrier of entry for new producers to come into the legal market,” Wilson mentioned.
MARKET DISPARITIES BLAMED FOR SINKING PROFITS
Since the legalization of hashish in 2018, there have been rising disparities between the authorized hashish sector and the unlawful market, in addition to the alcohol and tobacco trade, President of the Cannabis Council of Canada, George Smitherman, mentioned.
“We’re paying a regulatory fee, which was premised on a profitable industry, which tobacco and alcohol don’t pay,” Smitherman mentioned Wednesday.
Additionally, strict guidelines on THC ranges of sure merchandise and excessive tax charges have taken successful on buyers and business house owners as they are saying non-regulated shops have profited from not having to abide by the foundations.
A 2022 report discovered that Canadians investing in hashish companies collectively misplaced greater than $131 billion. Industry leaders mentioned they constructed their business on the federal authorities’s guarantees for a worthwhile trade however now that earnings are shaking, they’re hoping for fast motion.
“What happened to Smiths Falls can happen to any entity in Canada,” CEO of Truro Cannabis, Leonard Walter, mentioned. “There [are] federal and provincial regulations that both need to be worked on. There [are] solutions, we just need folks talking.”
After an almost 12-month delay, Health Canada introduced in September 2022 it will be conducting a legislative evaluation of the Cannabis Act.
Smitherman mentioned whereas there was knowledge collected and surveys created to extend consciousness on the issues within the trade, he hopes it will be sufficient to be considered forward of the 2023 finances.
