Neither potential proceeds nor costs associated with legalized marijuana were included in the 2018-19 provincial budget.
According to a small section near the end of the province’s budget documents, the move was made because both the legalization date and any potential income is uncertain.
Marijuana also didn’t come up during media briefings held prior to the budget being released in the legislature.
“The 2018-19 budget does not incorporate any revenue from the sale of cannabis in this initial year, in part because it remains unclear when legalization will occur,” the document said on page 56.
“And because the size of the cannabis market and anticipated retail price are difficult to predict, making it challenging to accurately forecast potential revenue.”
The province will receive 75 per cent of the federal cannabis excise duty generated in the province. It will also receive a proportional share of any revenue generated in Canada above the $10 million cap on federal revenues from the excise duty.
PST will also apply to all sales of cannabis. In addition, for in-province sales, the federal excise duty rate will be increased to account for interprovincial sales tax differentials, and the province will receive that revenue from the federal government.
