The Canadian cannabis industry faces rising regulatory fees, with increases scheduled annually to match inflation. These fees cover various licenses for cultivation, processing, sales, security clearances, and import/export permits, affecting both small and large operators.

While the fees are intended to offset the government’s costs for regulating the industry, some businesses struggle to pay, leading to millions in unpaid fees. In 2022-23, unpaid fees totaled CA$3.9 million. Despite these collections, regulatory fees only cover a portion of Health Canada’s operating costs, leaving the department to manage a gap between revenue and expenses. Balancing these fees is crucial for a sustainable cannabis market in Canada.