Health Canada’s Cannabis-Related Fees Generate $60 Million

Health Canada recently amassed over $60 million in cannabis-related fees within the last year, covering less than half of the department’s nearly $124 million operating expenses, as outlined in a recent report.

Regulatory Activities and Revenue Generation

These fees primarily cater to various regulatory functions, including inspections, compliance, enforcement, program management, and oversight associated with federal cannabis production licenses.

Application Fees and Revenue Streams

Cannabis producers pay application fees for licenses, which have been $1,765 for micro or nursery licenses and $3,527 for standard or medical-only licenses.

These fees amounted to $410,180 in total. Starting April 2024, revised rates will set the application fees at $1,969 for micro/nursery and $3,933 for standard cultivation/processing or medical-only licenses.

Beyond application fees, once licensed, micro cultivators, processors, or cannabis nurseries contribute a portion of their revenue, yielding $55,894,055 towards the department’s operational expenses.

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Security Clearance Fees and Future Adjustments

Applying for a security clearance incurs a $1,781 fee, generating $2,945,335 in revenue, slated to increase to $1,987 by April 2024.

Import or Export Permit Costs and Amendments

Health Canada charges $658 for an Import or Export Permit application, accumulating $946,464 in revenue. This fee will rise to $734 from April 2024 onwards.

 

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