Cannabis in Manitoba
 

Cannabis taxation and revenue.

Manitoba Liquor and Lotteries (MBLL) will apply a wholesale mark-up on non-medical cannabis. This approach is similar to that for the sale of alcohol in Manitoba. The mark-up will help pay for MBLL’s administrative costs as the province’s cannabis wholesaler and reporting agency.

The Manitoba government will also collect a cannabis retailer Social Responsibility Fee (SRF) on the annual revenues from the sale of non-medical cannabis by all provincially-licensed cannabis retailers. The fee is effective on January 1, 2019.

Manitoba will not apply the provincial sales tax (PST) on non-medical cannabis sales, but will continue to apply the PST to the sale of medical cannabis. The federal goods and services tax (GST) will apply to both medical and non-medical cannabis sales.

While the costs and revenues associated with this new market are very difficult to predict, initial projections indicate that the costs associated with the legalization of non-medical cannabis will exceed revenues from mark-ups and fees. Revenues from the SRF will be used to fund the many social costs associated with the legalization of cannabis, including addictions treatment and public education campaigns.

For more information, please see Cannabis Retailer Social Responsibility Fee and Wholesale Markups.