Seven days ago the merger spawned [From TWEED and Bedrocan] company Canopy Growth Corp. (CGC) began to lobby the Liberal government at the highest levels with multiple avenues regarding their position as well as others in the the “grey market.” Aletter writing campaign to Canada Revenue Agency as well as the minister of finance to address the matter of a .13% sales tax currently being charged on medical Cannabis, but not on other drugs.
The multi-prong approach has prompted announcements that all current Dispensaries owe that sales tax, regadless of a method by which to report and pay it.
In the deep trough left by this aggressive move a subsidiary company of CGC; Bedrocan, reduced its price per gram from $7.50 to $5 no matter the strain. Their pricing model has always had a single price for all it’s strains, a rare model in the industry be it white or “grey.”
The move could be perceived as damage control or to spin public opinion. Most observers inside the field are glad to see patients cut a break since most pay out of pocket for this amazing herb. A recent assessment published in an article regarding the price break quoted numbers for the average medical user to be a lot closer to a possible monthly cost.
Sure there are low end medicinal users, however the other end of the scale would certainly bring daily usage and yearly cost to a rather different segment of the economic impact estimated.
“Dundee Capital Markets analyst Aaron Salz says it costs the average consumer of medical cannabis between $1,400 and $2,800 a year to access the drug.” – CTV news article dated January 25, 2016.