• Instagram
• LinkedIn
• Twitter

In a defining moment for Canada’s cannabis industry, the Cannabis Council of Canada has issued a strong, clear message to Prime Minister Mark Carney’s newly elected Liberal government. In a press release dated April 28th, Council President Paul McCarthy extended congratulations—then pivoted quickly to a firm demand for overdue reform. Six years after cannabis legalization, the legal market remains strangled by archaic tax policies, regulatory red tape, and unchecked illicit competition. For athletes, wellness advocates, and those pioneering science-backed cannabis recovery brands, this moment could redefine access, growth, and legitimacy—or stall them yet again.

Since 2018, Canada’s legal cannabis industry has pumped more than $43 billion into the national GDP, with $7.4 billion in 2024 alone. But despite these numbers, many licensed producers are teetering on the edge of collapse. At the heart of the crisis lies a tax framework that has become unsustainable.

“The current excise taxation framework is completely misaligned with today’s market realities,” said McCarthy. When first introduced, cannabis sold at around $10 per gram. Today, producers are receiving as little as $3 per gram—yet the excise tax remains the greater of 10% of value or $1 per gram. That tax floor, once tolerable, is now crushing. “Instead of thriving, licensed producers are being pushed to the brink – many are unable to meet their tax obligations and are being forced out of the market, taking good jobs with them,” McCarthy warned.

The Cannabis Council is urging the government to eliminate the $1-per-gram minimum and shift to a 10% ad valorem rate, as proposed by the Standing Committee on Finance in 2024. This simple adjustment could revitalize an industry that has proven its value and viability.

Beyond taxation, the illicit market continues to erode the foundations of legalization. The Council is sounding the alarm: illegal cannabis still accounts for 25% to 40% of all sales in Canada. “Since legalization, the previous government largely turned a blind eye to the persistent illicit cannabis market,” McCarthy said. “This undermines the foundation of legalization and the promise of a safe, regulated cannabis industry.”

It’s not just an economic threat—it’s a public health crisis. Government lab tests showed that 94% of illegal cannabis samples contained pesticides, and some contained Escherichia Coli, indicating fecal contamination. Consumers are largely unaware that many online sellers are operating illegally—and dangerously.

The Council is demanding that the federal government adopt a comprehensive strategy: crack down on illegal storefronts and websites, stop illegal shipments, and launch a public awareness campaign to protect consumers and restore confidence in the legal market.

Finally, the Council highlighted a logistical nightmare burdening legal businesses: the patchwork excise stamp system. Each province requires its own cannabis tax stamp, adding cost and complexity for national distribution. “The Cannabis Council of Canada welcomes [the government’s] signal [to adopt a national stamp] and urges the government to deliver on that commitment without delay.”

For athletes and health-conscious consumers, cannabis has emerged as a vital tool in the pursuit of recovery, pain management, and overall wellness. But despite legalization, Canada’s current tax regime and restrictive marketing regulations have put a chokehold on the industry’s ability to innovate in this space. The excise tax burden alone has forced many producers to abandon health-focused initiatives entirely, leaving a critical gap in care for medical patients and sidelining what could be a thriving sector for sports performance and therapeutic use.

The time for cautious optimism has passed. Canada’s cannabis sector has shown its worth—and is now demanding the chance to thrive. With Mark Carney at the helm, the federal government has an opportunity to correct course and honor the promise of legalization. “The cannabis industry deserves the same attention and support as any sector of our economy,” McCarthy said. If Carney’s government delivers on long-awaited reforms, it won’t just save struggling producers—it will help position Canada as the global leader it once claimed to be.