A gram of legal cannabis in Ontario is likely to cost you around $10, according to CBC News.
Until now, the Ontario government has remained tight-lipped about cannabis pricing, anticipated product demand or potential taxation revenues once cannabis is legalized nationwide next July.
On Wednesday at the Legislature, however, Finance Minister Charles Sousa told CBC News that a retail price of $10 per gram is “certainly something we’re giving consideration to.”
"The intent is to have some uniformity with these prices across Canada," said Sousa.
Cannabis pricing and taxation will be explored at a meeting of federal, provincial and territorial finance ministers in the coming months, added Sousa.
A gram of cannabis in New Brunswick is also likely to cost about $10, according to press releases from the two cannabis companies recently announced to be the province’s suppliers.
Concerns that these prices will not eliminate the black market have been abundant in recent days. While the current street price of illegal cannabis varies across the country, an analysis by the parliamentary budget officer released last fall indicated the average price in Ontario is $8.64 per gram.
Mark Stupak, founder of SoCo Medical Cannabis Collective in Toronto, told CBC the price of $10 per gram is a tipping point.
"If the government proposes to sell pot below $10 a gram, then yes, they will eliminate the black market," said Stupak.
"If, on the other hand, they keep selling at above $10 a gram, then I don't believe the market will be gone."
In terms of Ontario’s gross cannabis taxation revenue, Sousa suggested the government is looking at the ballpark of $100 million a year upon legalization, Sousa said.
"It is not a ridiculous number to consider, because as you've seen in other parts of North America the numbers can be actually quite higher," he said.
Earlier this month, the Ontario government revealed its plans to sell cannabis both online and through 150 government-run standalone stores by 2020.
h/t CBC News