A thriving illicit market, high taxes and persistent regulatory issues have made working in Canada’s cannabis industry too challenging for many.
With that said, the Cannabis Council of Canada (C3) announced Monday that it has chosen to suspend its active operations indefinitely. The organisation, a national lobby group larger than any other, will be entering a period of dormancy until industry conditions should improve.
“The Board will now take time to consider the Council’s future and the role it can continue to play in advancing the sector’s policy priorities,” the organisation said in its press release.
This national trade association, representing domestic licensed producers, has served as a voice for Canada’s legal sector since the end of the prohibition era in late 2018. The group has adamantly pushed for reform in the nascent industry to improve working conditions.
In November, C3 and industry leaders wrote an open letter to Prime Minister Mark Carney criticising the nation’s excise tax rate, logistics, stamping system and what they see as inadequate efforts to combat the illegal marijuana sector. Aside from C3 President Paul McCarthy, the undersigned included Organigram Global Inc (TSE: OGI) (NASDAQ: OGI) (FRA: 0OG) chief executive Beena Goldenberg, Aurora Cannabis Inc (TSE: ACB) (NASDAQ: ACB) (FRA: 21P) leader Miguel Martin and dozens of other prominent industry figures.
Despite the legal cannabis industry largely overtaking the illicit market since legalisation, criminal activity remains problematic. The RCMP issued a statement earlier this month addressing the topic, stating that those who choose to purchase their pot from unlawful sources are contributing to a cycle of organised crime.
“The profits from selling illegal cannabis are often used by organised crime groups to support and fund other illegal and harmful activities within Canada,” the RCMP stated.
This is ironic considering that in the eyes of C3, the government collects high taxes from legal producers but doesn’t spend enough to enforce laws against illegal operators.
Canada’s illicit market is still currently estimated to account for about 24 per cent of the whole. Despite declines in the prices of legal merchandise over the past several years, many consumers still flock to unregulated sources to save a few bucks.
Read more: Health Canada forces Ontario dispensary to get rid of its exterior artwork
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