The federal government revealed that more than $5.4 billion in cannabis tax revenue has been earned since the recreational drug was legalized in October 2018. From the total amount listed, $1.2 billion was generated for the federal government, with the remaining $4.2 billion going to the ten provinces throughout Canada.
Throughout the ten provinces, Ontario acquired the highest percentage of shared revenue at $1.5 billion. Alberta came in second place at $1 billion, which is surprising, considering that Alberta has less than one-third of Ontario’s population. Therefore, Alberta generated the most per capita at $210.
In comparison to the other provinces, Ontario and Alberta dominated the Canadian cannabis market. As identified below: (Manitoba Excluded)
- The Northwest Territories – $135.80 Per Person
- Yukon – $126.35 Per Person
- Saskatchewan – $121.55 Per Person
- Newfoundland & Labrador – $113.65 Per Person
- Quebec – $55.31 Per Person
Quebec Conservative MP Luc Berthold requested an official breakdown of the revenues earned from cannabis in the House of Commons. As such, an “Order Paper Question” was filled. This prompted the federal government’s disclosure of the tax revenue earned via cannabis.
Compared to the original projections made by the federal government, revenues are below the projected amount. The government anticipated yearly revenues of $690 million over the first five years of legalization. However, tax revenues are well below the expected amount at $567 million.
Substantial sums of money have been spent by Health Canada to educate the public and to create prevention programs. It’s estimated that from 2019 – 25, $21.6 million was spent on cannabis education & prevention. However, this is considerably lower than the original amount intended. Health Canada originally announced they would spend $83 million on cannabis education & prevention.
Fortunately, the federal government contributed an additional $29.6 million towards cannabis education & prevention. This brings the total amount to $51.2 million, which is still $31.8 million below the projected amount. Do you think the federal government and Health Canada should be spending more on cannabis education & prevention, or do you think they’ve done enough? Let us know what you think in the comments below.
