CannTrust Holdings (TSX:TRST) announced its plans to absorb the Federal Government’s excise tax on medical cannabis for its customers.
As quoted in the press release:
When Bill C-45, the Cannabis Act, received Royal Assent on June 21, 2018, it imposed an Excise Tax, being the greater of $1 per gram or 10 [percent] of the sale price of cannabis. Scheduled to come into effect on October 17, 2018, this tax is applicable for both the recreational and the medical market on all cannabis products containing [tetrahydrocannabinol] THC. Continuing its commitment to affordable medicine, CannTrust has announced that it will support its medical cannabis customers by continuing to offer competitive pricing of its quality medical cannabis and that the Company will absorb the increased cost as a result of the tax.
“Most patients have to pay for their cannabis products directly and we want to ensure they can continue to afford their medication. If you’re a CannTrust medical cannabis customer you will not have to pay more for your medical cannabis due to the upcoming Excise Tax. In addition to absorbing this tax, CannTrust remains committed to our compassionate use program which supports patients with financial needs,” said Brad Rogers, President of CannTrust.