Domestic marijuana companies are seeking help from the federal government, saying that their survival is threatened by high tax rates and strict regulations.
Five CEOs of major marijuana companies held a press conference in Ottawa on the 15th and discussed the scale of job cuts and closures of production facilities.
On this day, they complained that the high consumption tax was one of the obstacles to the company’s growth, and that the consumption tax rate of 2.3% over the past year, when prices soared, was too much of a burden.
Canopy Growth, one of Canada’s largest marijuana producers, recently announced it would lay off 800 people, or 35% of its workforce, and close some of its Smith Falls, Ontario facility.
Jonathan Wilson, CEO of Crystal Cure in New Brunswick, called on the federal government to reconsider its consumption tax rate. He argued that the exorbitant consumption tax was blocking opportunities for new producers to enter the industry as well as existing companies.
According to the report, marijuana business investors collectively lost more than $131 billion last year. Accordingly, major companies have started businesses according to the promise of the federal government that guaranteed profitability, but they expect immediate action from the government, saying that profits are plummeting.