Canopy brushes off up to 25% tax on legal marijuana
Canada’s first billion-dollar publicly listed marijuana producer Canopy Growth says the company will still turn a profit if Trudeau’s government taxes legal recreational weed
OTTAWA — The head of Canada’s first publicly listed marijuana producer said this week his company could still turn a profit even if Prime Minister Justin Trudeau’s government decided to tax legal recreational dagga at rates as high as 25%. A task force is due to report this month on how Canada can build a legal marijuana market that squeezes out organised crime, protects minors, ensures quality and adds to revenue through taxes. Canopy Growth CEO Bruce Linton said legislators would probably choose to control the distribution of recreational marijuana through government-run outlets such as liquour stores. "We can probably carry a tax burden of 25% or so and end up in the consumer hands on a still cost-competitive basis, with a superior product," Linton said Monday in an interview in Ottawa. Canopy, based in Smith Falls, Ontario, became the first marijuana producer to trade on a major North American stock exchange when it graduated to the Toronto Stock Exchange in July. It became the ...
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