Disclaimer: This is intended to provide information respecting the coordinated cannabis taxation framework under the Excise Act, 2001 in the Province of New Brunswick. This should not be regarded as a replacement of the laws, regulations, or administrative documents to which it refers.
What is the Cannabis Duty?
Federal legislation allows for a coordinated cannabis taxation framework with respect to cannabis products in provinces and territories that wish to participate. The rate is set by the federal government. Currently, the Government of New Brunswick receives 75 per cent of the duty revenues generated in respect of products intended to be sold within the province, with 25 per cent going to the federal government.
Tax Rate
The rates for the cannabis duty on cannabis products are set out in Schedule 7 to the Excise Act, 2001. The rates for the additional cannabis duty on cannabis products sold in New Brunswick are set out in Schedule 4 to the Excise Duties on Cannabis Regulations.
For dried and fresh cannabis, cannabis plants and cannabis seeds, only the greater of a flat-rate cannabis duty and an ad valorem cannabis duty is payable. If the flat-rate and ad valorem cannabis duty amounts are equal, then the flat-rate cannabis duty is payable. For cannabis extracts, edibles and topicals, a single flat-rate duty applies.
Dried and fresh cannabis, cannabis plants and cannabis seeds in New Brunswick are subject to either:
- An ad valorem duty of 10 per cent;
OR
- A flat-rate duty of:
- $1.00 per gram of flowering material included in the cannabis product for dried or fresh cannabis products;
- $0.30 per gram of non-flowering material included in the cannabis product for dried or fresh cannabis products;
- $1.00 per viable seed included in the cannabis product; and
- $1.00 per vegetative cannabis plant included in the cannabis product.
Cannabis extracts (including oil), edibles and topicals are subject to:
- A flat-rate duty of $0.01 per milligram of tetrahydrocannabinol (THC).
Administration
The Canada Revenue Agency (CRA) administers the Excise Act, 2001 and provisions relating to the imposition of excise duties on cannabis products, including in New Brunswick.
Questions regarding the administration of the cannabis duty should be directed to the CRA at:
- 1-866-330-3304 (English)
- 1-866-330-3304 (français)