That Cannabis Council of Canadathe Canadian Chamber of Commerce and StandForCraft.com, a coalition of 45 cannabis growers and processors, who identify themselves as small to medium-sized businesses, advocated a Brief working paper “Demonstrating the imminent need for government intervention” to save “failing small businesses” in Canada cannabis market.

“Even the most commercially successful and efficiently run farms cannot continue to operate in an environment that is often federal tax them in excess 30% of monthly top-line earnings. No other consumer-facing industry in Canada is taxed as heavily. Certainly none with a widespread and cheap illegal competitor that does not bear the burden of taxation or regulatory compliance,” the statement said.

An alert to action

The Cannabis Council of Canada, the national and international representative of Canada’s Licensed Producers and cannabis processors, supports the call for urgent action “in response to the unprecedented financial crisis raging in the legal cannabis sector”.

George SmithermanPresident and CEO of the Cannabis Council, stated that the extraordinary increase in cannabis producers defaulting on CRAs due to “outsized excise obligations” is an alarm for action.

Michael HarveyVP of Policy and International of the Canadian Chamber of Commerce, called Canada’s excise tax system “inefficient” and said it places significant administrative and economic burdens on businesses, particularly small farmers and processors.

“The legal sector therefore runs the risk of not being able to compete against the illegal market as these illegal companies are not obliged to pay the costs of compliance. Reform is needed now more than ever to help our legal sector grow and displace the legacy market,” said Harvey.

What’s in the report?

According to the press release, the paper reveals a “systemic lack of breakeven income levels for companies large and small in all…