Canada’s licensed growers want sales tax taken off medical marijuana

Canada’s licensed pot producers are pushing Ottawa to exempt patients from paying any sales tax on their products, which would give medical marijuana the same tax status as prescription drugs.

The Canadian Medical Cannabis Council, a trade group representing three commercial producers, argues the tax change would allow them to compete with illegal dispensaries, which have exploded in number across the country.

Philippe Lucas, executive director of the council, said he met with a policy adviser to Finance Minister Bill Morneau during prebudget consultations last week.

His group represents Tilray, Peace Naturals and Delta 9 Bio-Tech, which are among about two dozen commercial producers licensed to ship medical marijuana to patients through the mail.

“This is a really quick way for the current government to show that it’s taking action on the cannabis file in a way that’s absolutely not going to cause any backlash or controversy,” Mr. Lucas, who...

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