The provincial tax has been beefed up by British Columbia and the tax is going to apply to the vaporizers of dried cannabis in addition to the vaping products of liquid marijuana. The legislations, which have been proposed newly, are going to triple the amount of provisional sales tax on these products to up to 20%.
The Finance Ministry has already confirmed that the tax is going to apply to the vaporizers if ultimately the legislation is approved. This was not entirely clear whether the tax is going to apply to the vaporizers but has been confirmed now. The ministry has said that the other products of adult-use cannabis have been sold through the channels which are regulated including the dried cannabis and the extractions are going to remain at the tax rate of 7%.
As per this legislation, which has been aimed at the broader market of vaping, the e-substances which include any of the gas, liquid or solid are designed for usage in the device for vaping. This tax has been facing a lot of criticism from the business circles for the potential of making these products lesser competitive when compared to the ones which are sold in the unregulated dominant market. They have said that this measure is one which is going to only strengthen the illicit market and must be reconsidered.
This new rate is going to come into effect from the 1st of January 2020 after the legislative approval and a period of public comment. The edibles, topical and extracts of the cannabis products are going to be rolled out gradually beginning the middle of December and the distribution is going to take place widely in the year 2020.