News and Insights

Canada Revenue Agency Revises Notice on Cannabis Duty Calculation

Tax Development May 09, 2019

The Canada Revenue Agency (CRA) recently updated the Excise Duty Notice EDN60, “Calculation of Cannabis Duty and Additional Cannabis Duty on Cannabis Oil ,Edible Cannabis, Cannabis Extracts, and Cannabis Topicals,” to revise the calculation of cannabis duty and additional cannabis duty amounts imposed on various cannabis products.

Effective May 1, 2019, excise duties on cannabis oil packaged after April 30, 2019 will be calculated based on the new method outlined in the notice. This new method will also apply to edible cannabis, cannabis extracts, and cannabis topicals when they are available for legal sale.

Key changes include revisions to the flat-rate cannabis and additional cannabis duties applicable in Manitoba, Nova Scotia, Nunavut, and Ontario. In addition, the duties on cannabis oil will now be calculated based on milligrams of total THC content in the product, instead of the finished weight of the cannabis oil. The revised notice also provides examples of federal and provincial duty calculations.