What does this research mean for the field?

Specific taxation based on total THC content produces a higher excise tax per mg of THC for high-THC cannabis products compared to weight-based ad valorem taxation, making it a more effective policy tool for reducing high-THC consumption. Novelty: ClaimNovelty.INCREMENTAL. Consensus alignment: ConsensusAlignment.NEUTRAL.

What question did this study set out to answer?

To evaluate and simulate the impact of current and alternative cannabis excise tax structures in Ontario to identify which method most effectively reduces the consumption of high-potency products.

September 10, 2026Journal of Cannabis ResearchOpen Access

Canadian taxation methods for cannabis: an examination of the impact of different tax methods based on legal products sold in Ontario

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Authors

BSBundit Sornpaisarn JMJakob Manthey SISameer Imtiaz

Discussion

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Overview

Simulation study reveals that specific taxation targeting tetrahydrocannabinol content increases costs of high-potency cannabis, indicating potential policy tools to curb high-risk consumption.

Key Points

To evaluate and simulate the impact of current and alternative cannabis excise tax structures in Ontario to identify which method most effectively reduces the consumption of high-potency products.
Analyzed price structures and excise taxes per milligram of tetrahydrocannabinol (THC) across 2,568 legal cannabis product units sold in Ontario in March 2022.
Simulated and compared alternative tax methods, bases, and rates against existing specific-only (SO) and ad valorem with specific floor (ASF) taxation systems.
Current weight-based ASF taxation resulted in a lower tax per milligram of THC for high-potency products compared to lower-potency options.
THC-based SO taxation generated the highest average excise tax per milligram across all potency tiers, raising tax rates on high-potency items and narrowing price gaps between potency categories.
SO taxation substantially reduced tax rates per milligram of THC on the lowest-potency categories, lowering the cost profile of youth-friendly edible products.

Cite This Study

Sornpaisarn et al. (2026) studied this question.

synapsesocial.com/papers/6aa27bbd58559d80afc75287 https://doi.org/10.1186/s42238-026-00499-5

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September 10, 2026Journal of Cannabis ResearchOpen Access

Canadian taxation methods for cannabis: an examination of the impact of different tax methods based on legal products sold in Ontario

View Full Paper

Ask AI

Bookmark

Authors

BSBundit Sornpaisarn JMJakob Manthey SISameer Imtiaz

Discussion

Member takes

Overview

Simulation study reveals that specific taxation targeting tetrahydrocannabinol content increases costs of high-potency cannabis, indicating potential policy tools to curb high-risk consumption.

Key Points

To evaluate and simulate the impact of current and alternative cannabis excise tax structures in Ontario to identify which method most effectively reduces the consumption of high-potency products.
Analyzed price structures and excise taxes per milligram of tetrahydrocannabinol (THC) across 2,568 legal cannabis product units sold in Ontario in March 2022.
Simulated and compared alternative tax methods, bases, and rates against existing specific-only (SO) and ad valorem with specific floor (ASF) taxation systems.
Current weight-based ASF taxation resulted in a lower tax per milligram of THC for high-potency products compared to lower-potency options.
THC-based SO taxation generated the highest average excise tax per milligram across all potency tiers, raising tax rates on high-potency items and narrowing price gaps between potency categories.
SO taxation substantially reduced tax rates per milligram of THC on the lowest-potency categories, lowering the cost profile of youth-friendly edible products.

Cite This Study

Sornpaisarn et al. (2026) studied this question.

synapsesocial.com/papers/6aa27bbd58559d80afc75287 https://doi.org/10.1186/s42238-026-00499-5

View Full Paper

Ask AI

Bookmark