B.C. hasn’t seen the payoff from legalized cannabis
Posted March 6, 2019 4:38 pm.
This article is more than 5 years old.
VICTORIA (NEWS 1130) – The revenue from legalized cannabis hasn’t yet turned into a pot of gold for government, but the finance minister says this is a for now, not forever situation.
Carole James says there were delays because of federal implementation.
“And there were delays because of the municipal elections as well,” she says. “So really it’s a matter of timing and when things will occur. But to be cautious and prudent in our budget, we reduced our expectations.”
She says the number of shops approved to sell cannabis so far is nowhere near what it will be.
“Because of the delays with both the federal government and municipal election, you’ve seen a delay in the opening in stores,” she says. “And that obviously impacts the revenue.”
James says when edibles are legalized later this year that will add to additional sales as more shops open.
In the meantime, she says the province has accounted for the change, scaling back revenue expectations to $68 million over three years in the budget, down from about $200 million.
“We can make adjustments to that each year as we see the progress of the stores opening and the retail opening,” she says. “We expect again the edibles issue hasn’t been addressed, that’s another piece that is going to impact revenue.”
Edibles will be available in the fall.
