
Alberta collected most cannabis tax revenue per capita of any province
CBC
Since recreational cannabis was legalized in Canada, Alberta has collected the most tax revenue per capita of any province, pulling in about $210 per person.
Over that time, Canada has taken in more than $5.4 billion in cannabis tax revenue. The federal government collected $1.2 billion, with the remaining $4.2 billion going to provincial coffers.
Ontario took in the greatest provincial share of revenue — $1.5 billion — with Alberta coming in second at just over $1 billion, despite having less than a third of Ontario's population.
Alberta easily surpassed its nearest rival the Northwest Territories, which collected $135.80 per person. They are followed by the Yukon at $126.35, Saskatchewan at $121.55 and Newfoundland and Labrador at $113.65.
Quebec has the lowest per capita share of recreational cannabis tax revenue, at just $55.31 per person since October 2018.
The information comes in an answer to a House of Commons order paper question from Quebec Conservative MP Luc Berthold, who asked for a breakdown of cannabis tax revenue and spending on associated prevention programs.
Michael Armstrong, an associate professor at Brock University whose research covers the economic aspects of cannabis legalization, said there are two main reasons Alberta's cannabis tax revenue is so high.
For one, Alberta was quick to roll out licensed retail stores and, as a result, Albertans have had plenty of opportunity to purchase cannabis since 2018.
But also, Alberta is one of three provinces that charge an additional tax on top of the standard excise duty. The Alberta government applies a 16.8 per cent surcharge to the excise duty — the highest percentage of any other province, said Armstrong.
"That percentage — you don't see it as a consumer. It doesn't show up on your receipt like a retail tax would, but it's roughly equivalent to there being a retail sales tax of 10 per cent on all the cannabis sold legally in Alberta," said Armstrong.
"Having it kind of buried at the producer wholesale level is probably good politics, but maybe not good economic policy."
The Alberta government keeps the revenue from the additional tax.
Kieley Beaudry said ultimately, producers and retailers pay the price.
"It has really dampened innovation and growth in the Alberta cannabis market space. It's made it very difficult for producers to not just turn a profit, but actually be able to grow their business," said Beaudry, the president of the Alberta Cannabis Micro Licence Association, which supports small cannabis producers in the province.













