Pubdate: Mon, 16 Jan 2017
Source: Cape Breton Post (CN NS)
Copyright: 2017 Cape Breton Post
Contact:  http://www.capebretonpost.com/
Details: http://www.mapinc.org/media/777
Author: Charles W. Sampson
Page: A8

MEDICAL MARIJUANA ILLEGALLY TAXED

Why are patients who legally acquire medical marijuana being illegally
charged sales tax on this medicine? Correspondence to get clarification on
why this is so included federal Health Minister Jane Philpott, Finance
Minister Bill Morneau and our two MPs - Mark Eyking and Rodger Cuzner.

Health Minister Philpott replied that "tax policies fall within the
purview of Hon. Bill Morneau" and forwarded my inquiry to him. MP Eyking
replied with what are the existing regulations on marijuana that represent
outdated information considering the ongoing changes with medical
marijuana.

However, Veena Bhullar, senior special assistant - operations, for
Morneau, replied on Nov. 4 the following:

"Under the GST/HST, the general policy objective governing the tax
treatment of drugs is to eliminate the tax on those drugs that are needed
to deal with illness, disease or disability. It is for this reason that
tax relief is generally limited to drugs prescribed by a medical
practitioner.

"The minister understands that their longstanding position, which has been
upheld by the courts, is that medical marijuana/cannabis is not acquired
pursuant to a prescription, therefore sales are taxable."

On Nov. 4, I sent the following reply to Minister Morneau:

"According to your special assistant's reply, medical marijuana is not
acquired pursuant to a prescription and is therefore taxable.

"The medical marijuana I have been able to obtain had to have a legally
licensed medical doctor (not an easy task) prescribe it by forwarding his
prescription to one of the government-licensed producers in New Brunswick.
I then have to register the patient with this government-licensed producer
to purchase this medical marijuana. The producer will not sell this
medication without the doctor's prescription that he had to forward to
this government-licensed producer.

"Therefore, I don't understand your assistant's comment that this medical
marijuana is not acquired pursuant to a prescription and is taxable.

"Am I correct in interpreting your assistant's comment that medical
marijuana is available to purchase from a government-licensed producer in
Canada without a prescription from a legally licensed doctor?"

Minister Morneau has not replied. Nor has anyone else responded that
explains this situation.

Apparently this government's policy activation and this government's
updating regulations regarding medical marijuana cannot be updated
simultaneously. This needlessly and reprehensibly results in those
patients paying an unjustified tax on a legally doctor-prescribed medicine
because of government incompetence.

Charles W. Sampson

Sydney Forks
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