Village Farms International Enthusiastically Supports Standing Committee’s Recommendations for New Cannabis Excise Duty Model
VANCOUVER, British Columbia and ORLANDO, Fla., Feb. 29, 2024 (GLOBE NEWSWIRE) -- Village Farms International, Inc. (“Village Farms”) (NASDAQ: VFF) enthusiastically supports recommendations on changes to the current Cannabis Excise Duty model released this week by the Canadian House of Commons Standing Committee on Finance.
- VANCOUVER, British Columbia and ORLANDO, Fla., Feb. 29, 2024 (GLOBE NEWSWIRE) -- Village Farms International, Inc. (“Village Farms”) (NASDAQ: VFF) enthusiastically supports recommendations on changes to the current Cannabis Excise Duty model released this week by the Canadian House of Commons Standing Committee on Finance.
- Those recommendations include adjustment to the excise duty formula for cannabis so that it is limited to a 10% ad valorem (proportionate to value) rate.
- When the Cannabis Excise Duty model was first adopted, it envisioned a retail selling price of cannabis much higher ($10-plus per gram) than is currently prevalent in today’s market, such that the $1 per gram duty would have effectively been aligned to a 10% ad valorem tax rate.
- Related to excise duty payments, Village Farms also notes recent reports with respect to the Canadian Revenue Agency’s (CRA) collection enforcement of the growing past due excise tax balances.