Notice of Ways and Means Motion to amend the Excise Act, 2001
That it is expedient to amend the Excise Act, 2001 as follows:
Cannabis Taxation
1 (1) The description of B in the definition dutiable amount in section 2 of the Excise Act, 2001 is replaced by the following:
B is the percentage set out in paragraph 2(a) of Schedule 7, and
(2) Paragraphs (a) and (b) of the definition low-THC cannabis product in section 2 of the Act are replaced by the following:
(a) consisting entirely of
(i) fresh cannabis,
(ii) dried cannabis, or
(iii) oil that contains anything referred to in item 1 or 3 of Schedule 1 to the Cannabis Act and that is in liquid form at a temperature of 22 ± 2°C; and
(b) any part of which does not have a maximum yield of more than 0.3% THC w/w, taking into account the potential to convert THCA into THC, as determined in accordance with the Cannabis Act. (produit du cannabis à faible teneur en THC)
(3) Section 2 of the Act is amended by adding the following in alphabetical order:
dried cannabis has the same meaning as in subsection 2(1) of the Cannabis Act. (cannabis séché)
fresh cannabis has the same meaning as in subsection 1(1) of the Cannabis Regulations. (cannabis frais)
THCA means delta-9-tetrahydrocannabinolic acid. (ATHC)
total THC of a cannabis product means the total quantity of THC, in milligrams, that the cannabis product could yield, taking into account the potential to convert THCA into THC, as determined in accordance with the Cannabis Act. (THC total)
(4) Subsections (1) to (3) come into force, or are deemed to have come into force, on May 1, 2019.
2 (1) Section 172 of the Act is replaced by the following:
Application of interest provisions
172 For greater certainty, if an amendment to this Act, or an amendment or enactment that relates to this Act, comes into force on, or applies as of, a particular day that is before the day on which the amendment or enactment is assented to or promulgated, the provisions of this Act and of the Customs Act, as the case may be, that relate to the calculation and payment of interest apply in respect of the amendment or enactment as though it had been assented to or promulgated on the particular day.
(2) Subsection (1) comes into force, or is deemed to have come into force, on May 1, 2019.
3 (1) Paragraph (b) of the description of A in section 233.1 of the Act is replaced by the following:
(b) the amount obtained by multiplying the fair market value, at the time the contravention occurred, of the cannabis products to which the contravention relates by the percentage set out in paragraph 4(a) of Schedule 7, as that paragraph read at that time;
(2) Subsection (1) comes into force, or is deemed to have come into force, on May 1, 2019.
4 (1) Paragraph (b) of the description of A in section 234.1 of the Act is replaced by the following:
(b) the amount obtained by multiplying the fair market value, at the time the contravention occurred, of the cannabis products to which the contravention relates by the percentage set out in paragraph 4(a) of Schedule 7, as that paragraph read at that time;
(2) Subsection (1) comes into force, or is deemed to have come into force, on May 1, 2019.
5 (1) Subparagraphs 238.1(2)(b)(i) and (ii) of the Act are replaced by the following:
(i) the dollar amount set out in subparagraph 1(a)(i) of Schedule 7,
(ii) if the stamp is in respect of a specified province, three times the dollar amount set out in subparagraph 1(a)(i) of Schedule 7, and
(2) Subsection (1) comes into force, or is deemed to have come into force, on May 1, 2019.
6 (1) Sections 1 to 4 of Schedule 7 to the Act are replaced by the following:
1 Any cannabis product produced in Canada or imported: the amount equal to
(a) in the case of dried cannabis, fresh cannabis, cannabis plants and cannabis plant seeds, the total of
(i) $0.25 per gram of flowering material included in the cannabis product or used in the production of the cannabis product,
(ii) $0.075 per gram of non-flowering material included in the cannabis product or used in the production of the cannabis product,
(iii) $0.25 per viable seed included in the cannabis product or used in the production of the cannabis product, and
(iv) $0.25 per vegetative cannabis plant included in the cannabis product or used in the production of the cannabis product; and
(b) in any other case, $0.0025 per milligram of the total THC of the cannabis product.
2 Any cannabis product produced in Canada: the amount obtained by multiplying the dutiable amount for the cannabis product by
(a) in the case of dried cannabis, fresh cannabis, cannabis plants and cannabis plant seeds, 2.5%; and
(b) in any other case, 0%.
3 Any imported cannabis product: the amount obtained by multiplying the value of the cannabis product by
(a) in the case of dried cannabis, fresh cannabis, cannabis plants and cannabis plant seeds, 2.5%; and
(b) in any other case, 0%.
4 Any cannabis product taken for use or unaccounted for: the amount obtained by multiplying the fair market value of the cannabis product by
(a) in the case of dried cannabis, fresh cannabis, cannabis plants and cannabis plant seeds, 2.5%; and
(b) in any other case, 0%.
(2) Subsection (1) comes into force, or is deemed to have come into force, on May 1, 2019 except that for the purpose of determining the amount of duty imposed on or after that day under subsection 158.19(2) of the Act on any cannabis product that is packaged before that day, section 2 of Schedule 7 to the Act is to be read as it did on April 30, 2019.
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