Canopy Growth comments on Federal Excise Tax Proposal
SMITHS FALLS, ON, Nov. 10, 2017 /CNW/ – Canopy Growth Corporation (TSX: WEED) (“Canopy Growth” or the “Company”) has been a longtime vocal proponent of a fair and reasonable tax rate that funds important programs needed to successfully transition cannabis out of prohibition. To this point, the Company has spent almost $1-million on its core CSR initiatives over the past three years in key policy areas; research, road safety, and youth education, and commits $1 from the sale of every bottle of cannabis oil to education projects.
The Company’s efforts include funding for important research initiatives such as the Quebec Cannabis Registry, funding a series of PSAs in partnership with MADD Canada and the Canadian Drug Policy Coalition, and committing funding to Parent Action on Drugs and Canadian Students for Sensible Drug Policy to support cannabis-specific education initiatives designed for parents looking for resources to help them talk to their children about responsible choices.
Today’s proposed rate, ten percent on top of existing HST falls within the limit of an acceptable tax framework and is in line with Management’s expectation. The proposed rate should allow Canopy Growth and other industry players of various sizes to compete with the black market on price point. Canopy Growth also strongly supports a system that sees the federal and provincial governments collaborate on taxation source and structure. A consistent rate across the country is preferable and would give the Company the confidence it needs to continue creating jobs and investing hundreds of millions of dollars across Canada.
While in some ways the Company understands the policy rationale of including taxation on medical cannabis sales, it is unfortunate that despite Canopy Growth’s ongoing advocacy efforts on the subject cannabis will continue to be the only physician-authorized drug in the country subject to sales tax. This is an unfair tax burden on chronically ill Canadians and only further reinforces the need for government, industry and patients to work together to obtain insurance coverage for authorized medical cannabis patients. To that end Canopy Growth is hopeful that revenue from cannabis taxation is earmarked for research to accelerate the Drug Identification Number approval process which is seen as the key to medical insurance coverage for cannabis-based medicines.
Here’s to Future Growth.
About Canopy Growth Corporation
Canopy Growth is a world-leading diversified cannabis company, offering distinct brands and curated cannabis varieties in dried, oil and capsule forms. Through its wholly‑owned subsidiaries, Canopy Growth operates numerous state-of-the-art production facilities with over half a million square feet of GMP-certified indoor and greenhouse production capacity, all to an unparalleled level of quality assurance procedures and testing. Canopy Growth has established partnerships with leading sector names in Canada and abroad, with interests and operations spanning four continents. The Company is proudly dedicated to educating healthcare practitioners, providing consistent access to high quality cannabis products, conducting robust clinical research, and furthering the public’s understanding of cannabis. For more information visit www.canopygrowth.com.