Ontario’s licensed drug manufacturers are losing money to the black market | Media Pyro

Text content

Most adult-use drugs in Canada include weed.

Text content

A report from the firm Ernst and Young, released by the Cannabis Council of Canada, found that licensed producers in Ontario saw their share of sales revenue drop to 60.8% in April 2022 from 74.2% in July 2019.

Text content

The report focused on how the legalization and taxation of the drug raises questions about the viability of the industry if the government does not help the industry find a cure.

Ideas include lowering and consolidating local and state tax rates.

There is also an awareness campaign to educate the public about the dangers of illegal products and to prevent illegal sales.

The recreational drug was legalized in Canada in the fall of 2018.

The law is intended to prevent youth access, protect public health by providing safe drug products for adults, and prevent criminals from accessing.

Text content

Today’s report says that – due to the growth of the industry – hope is fading and the illegal trade continues to grow, making the profits of the law firm impossible.

“No one could have predicted the onset of the global pandemic and the impact it would have on grocery stores,” the report said. “But the main issue is that it comes down to a very skewed playing field for the bad market. Lawmakers and consumers have to comply with a lot of government regulations and pay taxes at two levels of state and province – rules that bad players don’t play by.

“The legal profession has adapted in many ways to stay competitive. Producers have decided to take steps to be more profitable and lower their prices to attract customers. But many people struggle to effective, some pushed to the curb. The reduction in price did not match the state’s profits because most drug taxes are based on volume, not price. .

kconnor@postmedia.com