Cannabis Retailers Seek Licence Reforms from Manitoba Government

Cannabis retailers in Manitoba have met with the provincial government to voice their concerns and suggestions regarding the current licence regime for cannabis sales. The retailers say that the licence fees, taxes, and delivery times are too high and unfair, and that they need more flexibility and support to compete with the illegal market and other provinces.

Cannabis retailers in Manitoba are required to pay a number of fees and taxes to operate their businesses, which they say are excessive and disproportionate. Some of these fees and taxes include:

• A social responsibility fee, which takes six per cent of the retailers’ gross sales to fund public education, safety, health, and addiction programs related to cannabis legalization. The fee is set to be repealed in January 2024, but retailers say it should be eliminated sooner.
• A licensing fee, which costs $6,000 per year for each store location, plus $3,000 for each renewal application. The fee is higher than in other provinces, such as Alberta, which charges $400 per year, or Ontario, which charges $1,000 per year.
• An excise tax, which is a federal tax imposed on cannabis producers, but passed on to retailers and consumers. The tax is 10 per cent of the product price or $1 per gram, whichever is higher. The tax is shared between the federal and provincial governments, but retailers say the provincial share should be reduced or eliminated.
• A wholesale markup, which is a percentage added to the cost of cannabis products by Manitoba Liquor and Lotteries, the sole distributor of cannabis in the province. The markup varies depending on the product type and potency, but retailers say it is too high and inconsistent.

The retailers say that these fees and taxes make their products more expensive and less attractive to consumers, who can easily find cheaper and more convenient alternatives in the illegal market or online. The retailers also say that these fees and taxes reduce their profit margins and limit their ability to invest in their businesses and staff.

Delivery Times and Conditions: A Challenge for Cannabis Retailers

Cannabis retailers in Manitoba also face challenges with the delivery times and conditions of their cannabis products, which they say are too long and unreliable. The retailers have to order their products from Manitoba Liquor and Lotteries, which sources them from licensed producers across the country. The retailers say that the delivery times can range from a few days to a few weeks, depending on the availability and location of the products.

The retailers also say that the delivery conditions are not optimal for the quality and freshness of the products, which can affect their potency and shelf life. The retailers say that the products are not stored or transported in temperature-controlled environments, which can expose them to heat, cold, humidity, and light. The retailers say that they have no control or visibility over the delivery process, and that they have to accept the products as they are, even if they are damaged or expired.

The retailers say that these delivery issues make it difficult for them to manage their inventory and meet the demand and expectations of their customers, who can easily find fresher and more diverse products in the illegal market or online. The retailers also say that these delivery issues increase their costs and risks, and that they need more flexibility and options to source their products.

Licence Reforms and Support: A Request from Cannabis Retailers

Cannabis retailers in Manitoba have met with the provincial government to discuss their concerns and suggestions regarding the current licence regime for cannabis sales. The retailers say that they want to work with the government to improve the situation and create a more fair and competitive market for cannabis in the province. Some of the reforms and support that the retailers are asking for include:

• Reducing or eliminating the licence fees, excise tax, and wholesale markup for cannabis products, or at least aligning them with other provinces.
• Providing more information and transparency on the delivery times and conditions of cannabis products, and allowing retailers to choose their own suppliers and distributors.
• Offering more incentives and assistance for retailers to open new stores, especially in rural and remote areas, where access to legal cannabis is limited.
• Promoting and educating the public on the benefits and advantages of buying cannabis from legal and licensed retailers, such as quality, safety, and social responsibility.

The retailers say that these reforms and support would help them grow their businesses and serve their customers better, and that they would also benefit the government and the society, by generating more revenue, creating more jobs, and reducing the illegal market and its associated harms.

The provincial government has not yet responded to the retailers’ requests, but has said that it is open to dialogue and feedback from the industry and the public. The government has also said that it is committed to ensuring a safe and responsible cannabis market in Manitoba, and that it is reviewing the licence regime and the social responsibility fee.

For more information on cannabis retailers and the licence regime in Manitoba, visit winnipegfreepress.com.