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Monday, May 20, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Canada

Canadian cannabis sales shoot up by over 24%; unpaid taxes skyrocket

Yukoners spent more money on cannabis than any other province or territory during the fiscal year ending Mar. 31, 2023

Canadian cannabis sales shoot up by over 24%; unpaid taxes skyrocket
BC Green's Chief Operations Officer Bryan Safarik at the company's cultivation facility in Princeton, BC. Photo: Rowan Dunne

Canada’s annual cannabis sales rose by over 24 per cent during the fiscal year ending Mar. 31, 2023, according to new data from Statistics Canada released Wednesday. The country made C$1.9 billion in profit from pot during that period.

However, the amount of unpaid taxes among federally licensed operators rose by 72 per cent to nearly C$275 million during the calendar year ending Dec. 31. Despite the rise in sales, this alarming spike indicates that many may be going out of business in the near future.

In a statement sent to MJBizDaily, the Canada Revenue Agency said 259 licensed producers in the country were behind on their tax commitments. Ontario was the number one delinquent, with the number of producers owing substantial tax sums to the CRA rising from 65 to 80 throughout last year.

Meanwhile, the number of businesses with tax debt in the western provinces shot up from 93 to 127 during 2023. These numbers are concerning considering that only 12 operators throughout Canada were behind on tax commitments in 2019.

Canadians purchased C$4.7 billion worth of cannabis products during the fiscal year, representing an increase of about C$600 million year-over-year.

The top contributor to Canada’s rise in sales during that period was smokable extracts, with sales in that product category rising by 59 per cent from the previous fiscal year. This accounted for nearly 68 per cent of the C$600 million mentioned. Notably, Newfoundland & Labrador saw a 307 per cent increase in inhalable extract sales during that period of time.

Read more: Burb opens up shop next to UBC after years of pushback

Read more: Canada creates Cannabis Industry Forum to address challenges in the sector

Yukon residents spent more than double the Canadian average on weed

That’s right, apparently quiet northern life makes consuming cannabis twice as appealing as it is in other parts of Canada. Yukoners spent an average of C$314 per person during the fiscal year. The country’s average was about C$150.

Quebec residents spent the least at about C$88 a head during that time.

Furthermore, pot sales in Manitoba increased the most (23.7 per cent) while New Brunswick’s slightly declined year-over-year (-0.4 per cent) on the opposite end.

Statistics Canada reported that the quantity of alcohol sold in the country dropped by 1.1 per cent during the 2022/2023 fiscal year, indicating that cannabis is becoming a more popular intoxicating option than the sauce.

“This was the second consecutive year that volumes declined,” the agency said.

 

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