On April 23, 2026, the Cannabis Council of Canada (C3)—the national voice for Canada’s licensed producers and processors—submitted a significant update to the Office of the Commissioner of Lobbying. This isn’t just another routine filing; it is a formal, data-backed demand for the federal government to address the “punitive” tax regime that is currently stifling the legal market.
C3 is actively engaging with departments like Finance Canada and Innovation, Science and Economic Development (ISED) to deliver a clear message: The tax framework built in 2018 is broken, and 2026 must be the year it is fixed.
The core of C3’s argument centres on a massive disconnect between policy intent and practical reality. When legalization was first proposed, the excise tax was intended to be $1 per gram or 10% of a producer’s sale price—whichever was higher. The assumption was that wholesale prices would remain high enough that 10% would be the standard.
However, as wholesale prices have dropped to accommodate a competitive legal market, that “fixed” $1 per gram has become a heavy weight. C3’s latest filing highlights that for many high-volume, value-tier products, the excise tax now effectively hits nearly 30% of gross revenue. This “Excise Gap” is the primary reason many LPs are struggling with financial sustainability while the illicit market continues to operate tax-free.
As we move through 2026, C3’s work in Ottawa will be the most important story for every producer in the country. It’s time for a tax framework that reflects the reality of the market today, not the guesses made eight years ago.
You can support the Cannabis Council of Canada by visiting their Advocacy Hub where you can find resources to help educate your local MP and community about the need for a sustainable excise cap. https://www.cannabis-council.ca/advocacy