Canada’s first global marijuana tax is already in effect, and it’s expected to increase revenues by more than $100 million per year, the CBC reported Friday.
Canada’s government announced the tax in November, after the U.S. and other nations took steps to regulate and tax the drug.
The new tax applies to sales of pot in Canada.
It has yet to be finalized, but the CBC’s Chris Hall reported the tax will be levied on every ounce of marijuana sold, with the proceeds divided among the provinces.
The tax also requires all growers to pay a 5 per cent surcharge.
The provinces have until July 2 to finalize their tax.
Canada has more than 100 million registered pot users.
Marijuana is currently illegal in the U to grow for personal use, but federal law allows the cultivation of cannabis for medicinal use.
Marijuana legalization has also been an issue for Prime Minister Justin Trudeau.
In May, Trudeau promised a Liberal government would legalize marijuana.
In a speech in Edmonton last week, Trudeau also said Canada would move to end marijuana prohibition “as soon as possible,” adding: “I don’t think anyone should have to be in prison for using marijuana.”