Cost recovery for the regulation of cannabis

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Who is this for

The content on these pages apply to the following Health Canada cannabis licences:

  • micro-cultivation, nursery and standard cultivation
  • micro-processing and standard processing
  • sale for medical purposes

Licence holders with a sale for medical purposes licence should refer to the annual regulatory fee exemption to see if you qualify for it.

Foreword and disclaimer

Foreword

The goal of the Cannabis Fees Order is to recover the regulatory cannabis program costs by fairly charging those that benefit from the legal market, thereby reducing costs to taxpayers.

This guide provides cannabis licence holders with information on:

  • how to comply with the Cannabis Fees Order
  • how Health Canada administers the annual regulatory fee
  • how the transactional fees and annual regulatory fee are calculated and invoiced
  • how to claim an exemption from the annual regulatory fee if you have a sale for medical purposes licence
  • how to pay your fees

Disclaimer

You need to read these pages along with the Cannabis Act, the Cannabis Regulations and the Cannabis Fees Order. If there are differences between these pages and the Cannabis Act, the Cannabis Regulations or the Cannabis Fees Order, the Act, Regulations and Order are to be considered correct.

Compliance and enforcement

If you don't pay your fees on time, Health Canada will take compliance and enforcement action to collect any overdue fees.

These compliance and enforcement actions are specified under Section 145 of the Cannabis Act and Section 30 of the Cannabis Regulations. They can include:

  • withdrawal or withholding of services (such as issuing an import or export permit, or amending a licence)
  • suspension or revocation of a licence

See the Compliance and enforcement policy for the Cannabis Act for a breakdown of actions authorized under the Cannabis Act and its Regulations.

Consultations

Between July 12 and August 13, 2018, Health Canada engaged with stakeholders on the Proposed approach to cost recovery for the regulation of cannabis.

Between June 13 and June 27, 2020, Health Canada engaged with stakeholders on the Proposed approach to provide the cannabis industry with financial relief amid the COVID-19 pandemic.

A summary of feedback received, as well as how the feedback was included in the final design of the fees and the payment deferral for the 2020-2021 annual fee, can be found in their respective Regulatory Impact Analysis Statements (RIAS) in the Canada Gazette, Part II.

Between August 2021 and March 2022, Health Canada conducted a review of the Cannabis Cost Recovery Framework through external engagement with stakeholders using a questionnaire and follow-up interviews. Health Canada also undertook an internal review using program data to better understand the impact of the fees charged to licence holders, to assess the progress made on key policy objectives and on progress made towards full cost recovery. On August 21, 2023, Health Canada released the Summary report for the 2021-2022 review of the cannabis cost recovery framework.

Contact us

Cannabis and industrial hemp contact information for licence holders, applicants and industry

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