A new formula for excise tax on cannabis is coming into affect today and at least one industry expert say this should straighten out a flawed system.

The new excise tax is 1 cent per milligram of THC.

The CEO of Nanaimo-based Rob McIntyre says the excise tax system that had been in place until now, which was based on weight, meant the same taxes were applied to different products, as he says the same quantity could have different levels of potency.

“It was a very simple tax at $1 dollar a gram, which worked fine for the dried flower. But as we got into extracted products – cannabis oils, sublingual strips or an oral spray that’s allowed – those extracted products, the tax didn’t work very well at all,” McIntyre says.

“Thank goodness they saw a flawed system that’s been put to bed. The new system is much simpler, certainly… the method of calculating is a whole lot easier.”

McIntyre says the new excise tax likely will mean a drop in costs for cannabis retailers to stock their shelves. He says otherwise, retailers won’t necessarily be affected by the change as he says it will be paid by wholesalers.