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Government Collects $1.6B from Cannabis

The federal and provincial governments collected $1.55 billion in cannabis profit and tax revenue in the fiscal year ending March 31, 2022, according to recently released data by Statistics Canada.

This includes net income from provincial cannabis authorities, excise taxes, retail sales taxes, other specific taxes, licenses, and permits. A detailed breakdown is provided below. This data isn’t available for other years to provide a comparison.

Recreational Cannabis Sales Total $4B

Sales of recreational cannabis by provincial cannabis authorities and other retail outlets were $4.0 billion in 2021-22, equivalent to $131 per person of legal age to consume cannabis. Yukon had the highest per person cannabis sales ($291), followed by Alberta ($210) and Saskatchewan ($185). Quebec had the lowest ($89), followed by Manitoba ($107) and Nova Scotia ($125).

$752.5 Million in Excise Taxes

Government collected $160,241 million in federal excise tax and custom duties and $592,225 million in provincial and territorial excise tax in 2021-22. This is up 46% from the prior fiscal year, when government collected $514 million.

Excessive excise taxes have been widely criticized by industry. It’s a tax that in some cases is equal to more than a third of some licensed producer’s annual revenue, resulting in a debilitating barrier to their success and growth.

Dried Cannabis Most Popular

Dried cannabis was the most popular type of cannabis sold, accounting for 71.1% of recreational cannabis sales, followed by inhalable extracts such as vape pens, hash, and rosin (18.1%), and edibles (4.1%).

Quebec sold the highest proportion of dried cannabis in Canada (86.3%), likely because of its ban on cannabis vapes, edibles, and topicals in 2021-22.

Newfoundland and Labrador sold the smallest proportion of inhaled extracts (3.8%), partially because of its ban on cannabis vapes. In late 2022, the ban was removed.

Market Share by Cannabis Product, Provinces and Territories in 2021-22, Total Sales (%)

Dried Inhaled Extracts Solid Edibles Ingested Extracts Beverages Other
Canada 71.1 18.1 4.1 3.9 1.5 1.3
Newfoundland and Labrador 84.8 3.8 4.8 4.9 1.3 0.4
Prince Edward Island 80.0 4.0 4.0 5.0 1.0 6.0
Nova Scotia 66.9 17.2 4.4 7.6 1.9 2.0
New Brunswick 61.0 25.7 6.2 4.8 1.6 0.7
Quebec 86.3 8.2 0.0 4.8 0.7 0.0
Ontario 69.5 19.5 4.9 3.5 1.9 0.7
Manitoba 67.5 20.3 5.3 4.3 2.1 0.5
Saskatchewan 69.4 21.1 3.5 3.9 1.2 0.9
Alberta 66.2 24.2 4.4 3.2 1.3 0.7
British Columbia 66.9 16.7 5.6 4.2 1.4 5.2
Yukon 71.3 17.2 5.7 3.4 1.2 1.2

Source: Statistics Canada

Net Income of Cannabis Authorities and Government Revenue from Cannabis Sales (x1,000)

Cannabis authority sales: $3,108,932
Deduct cost of goods sold: -$2,453,286
Gross profit: $655,646
Deduct administrative and general expenses: -$349,946
Add other income: $26,619
Net income of cannabis authorities: $332,319

Total taxes and other revenue: $1,219,842
Federal excise tax and custom duties: $160,241
Provincial and territorial excise tax: $592,225
HST: $236,100
GST: $110,674
PST: $110,818
Other provincial and territorial revenue: $9,783

Net income of cannabis authorities and total taxes and other revenue: $1,552,161

Source: Statistics Canada

Tags: Canada Cannabis (138), cannabis retail sales (33), cannabis retail trends (14), cannabis sales trends (49), cannabis statistics (2), retail cannabis (43), Statistics Canada (51)