Canada: Manitoba announces ‘social responsibility fee’ and markups on cannabis

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When legalization is implemented in Canada this October, cannabis in the province of Manitoba will be subject to a wholesale markup and a government fee.

The provincial government is applying a 75 cent markup per gram with an additional nine percent at the wholesale distribution level.

Additionally, six percent will be added to a retailer’s annual revenues. The provincial fee will be known as a “social responsibility fee” and will take effect sometime next year.

The Progressive Conservative government in the province says they will use that money to help pay for public education, safety enforcement and addictions programs.

“The various health, safety and enforcement implications of legalized cannabis fall almost entirely to the provincial level of government,” said Growth, Enterprise and Trade Minister Blaine Pedersen in a press release.

“Our plan will help cover these provincial costs and also ensure fairness, recognizing the social responsibility retailers must share.”

Pedersen said that the province will continue to monitor the market and may adjust the markup and provincial fee in the future as needed.

He said that the government wants to keep prices as low as possible in order to drive out the illegal market while ensuring and promoting public safety.

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