The federal government has reached an agreement with the provinces and territories on how cannabis tax revenues will be split.
An initial fifty-fifty proposal was not well received by the provinces who felt they were being unfairly burdened with the costs.
Nova Scotia Finance Minister Karen Casey feels the federal government listened to their issues.
“We all as ministers took our own provincial concerns to the table. Many of them were similar so that was common language for the ministers.”
The new formula sees a 75/25 split between the province and the feds for the first two years while the retail cannabis sector is established.
Casey is happy with the result.
“It is the initial start-up and beginning of the distribution that [holds] so many uncertain things. But we believe that, based on what we know now, this is a good and fair share for us.”
A cap has also been established, so that any federal revenue over $100 million will be returned to the provinces and territories.
