Business
Cannabis has already generated more than $5,4 billion in tax revenue for Canada since 2018.
Canada has already collected more than C$5,4 billion in tax revenue since legalizing cannabis in October 2018. The legal cannabis market is now a significant source of public revenue, particularly at the provincial level. Data released by the Canadian government's House of Commons confirms the strong economic impact of legalization, making the country one of the world's leading examples of regulating adult cannabis use.
The data was released following the Question 423, put forward to the government by the conservative deputy from Quebec, Luc Berthold, which asked: “With respect to the government and cannabis: (a) what was the total revenue received by the government from excise taxes and other taxes on cannabis since January 2019, broken down by year; (b) what is the distribution of (a) by province or territory and type of tax or levy; and (c) how much did the government spend annually on cannabis warnings and prevention of its use, broken down by educational or advertising campaign?”
The response was presented to the House of Commons on November 24, 2025, through the Session Document 8555-451-423.
Of the total collected, approximately $4,2 billion went to the provinces and territories, while the federal government received approximately $1,2 billion.
Ontario leads in absolute figures, with approximately $1,5 billion collected in taxes since 2018. The province of Alberta follows closely behind, with over $1,1 billion, despite having less than a third of Ontario's population. In per capita terms, Alberta has the highest value in the country, at around $210 per inhabitant.
At the opposite extreme is Quebec, which has the lowest per capita income since legalization, at approximately $55 per resident. The more restrictive market and price control policies in this region help explain the difference.
Federal revenue below initial forecasts.
When legalization was implemented, the federal government projected collecting approximately $690 million in the first five years. However, by the end of fiscal year 2022–2023, accumulated revenue was only about $567 million, slightly below expectations. Currently, the federal total exceeds $1,2 billion, a result of accumulation over several years.
These figures have fueled criticism from the industry, which believes that the structure of the cannabis excise tax and the margins applied throughout the supply chain continue to penalize the competitiveness of the legal market.
Investment in prevention and education remains low.
The MP also questioned the government about how much Canada spends annually on warnings about cannabis use and prevention (in total and broken down by educational or advertising campaigns). The government responded that since 2018-19, Health Canada has “invested $21.578.534,76 in educational and advertising campaigns”.
These campaigns encompass “prevention messages, as well as other related messages, such as harm reduction, mental health, choosing legal products, and preventing cannabis poisoning in children.”
Despite the high revenues, public investment in prevention, education, and harm reduction programs was comparatively limited. This discrepancy between the billions collected and the investment in public health continues to generate criticism from experts and civil society organizations.
Seven years later, positive economic results and social challenges to be resolved.
Seven years after legalization, the economic balance of cannabis in Canada is clearly positive for public finances, especially for the provinces. However, important challenges remain: balancing the high tax burden, the financial sustainability of companies in the sector, and effective investment in health and prevention.
Nevertheless, the Canadian case remains an international benchmark and a clear example that legalization is not measured solely by tax revenue: it is also measured by social impact and the ability to reinvest revenues in the well-being of the population.
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[Disclaimer: Please note that this text was originally written in Portuguese and is translated into English and other languages using an automatic translator. Some words may differ from the original and typos or errors may occur in other languages.]____________________________________________________________________________________________________
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With a degree in Journalism from the University of Coimbra, Laura Ramos has a postgraduate degree in Photography and has been a Journalist since 1998. Winner of the Business of Cannabis Awards in the category "Journalist of the Year 2024", Laura was a correspondent for Jornal de Notícias in Rome, Italy, and Press Officer in the Office of the Minister of Education of the 21st Portuguese Government. She has an international certification in Permaculture (PDC) and created the street-art photography archive “Say What? Lisbon” @saywhatlisbon. Co-founder and Editor of CannaReporter® and coordinator of PTMC - Portugal Medical Cannabis, Laura directed the documentary “Pacientes” and was part of the steering group of the first Postgraduate Course in GxP's for Medicinal Cannabis in Portugal, in partnership with the Military Laboratory and the Faculty of Pharmacy of the University of Lisbon.
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