FINA Appearance: Federal Budget Shouldn’t Tax Medicine

FEDERAL BUDGET SHOULDN’T TAX MEDICINE

OTTAWA, ON – Canadians for Fair Access to Medical Marijuana (CFAMM) will fight for the rights of patients at Parliamentary hearings on the 2018 budget today, arguing against a proposed sin tax on medical cannabis.

Appearing before the Standing Committee on Finance, CFAMM representatives will urge MPs to amend Bill C-74 and eliminate the proposed sin tax on medical cannabis (watch here).

“Struggling patients can’t understand why, when they’re doing their very best to take care of themselves, that the government would propose a sin tax on their medicine and treat it like alcohol, tobacco, or gasoline,” said James O’Hara, President and CEO of Canadians for Access to Medical Marijuana (CFAMM). “It’s time for the Canadian government to step up and treat medical cannabis as a medicine. That means no tax and especially no sin tax for medical cannabis patients”.

CFAMM has been leading a national campaign, called #DontTaxMedicine, against the government’s misguided plan to tax medical and recreational cannabis at the same rate. Over 20,000 Canadians have written their MPs calling for the elimination of tax on medical cannabis.

In an open letter sent to the Finance Committee today, a coalition of national non-profit organizations continued to advocate as a united front and firmly recommended that the government eliminate tax on medical cannabis.

“Both the general public and the healthcare communities overwhelmingly support eliminating tax on medical cannabis,” said James O’Hara. “The Finance Committee has an opportunity to listen to Canadians who require cannabis for medical purposes. This committee can and should reverse the government’s misguided decision to apply a sin tax on patients’ medicine.”

CFAMM commends NDP Finance Critic Peter Julian, MP (New Westminster-Burnaby) for putting forward an amendment to Bill C-74 which would remove the proposed sin tax on medical cannabis and calls on all members of the Standing Committee on Finance to stand for Canadian patients by supporting the proposed amendment.

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Skinner Appeal Decision Response

Appeal decision in Skinner (medical cannabis coverage case) disappoints community, but the fight is not over.

Decision re-ignites focus on urgent affordability challenges facing patients like Gordon Wayne Skinner.

April 12, 2018 – Halifax, NS – Today, the Nova Scotia Court of Appeal released a decision in Canadian Elevator Industry Welfare Trust Fund v. Skinner (“Skinner”) overturning the Nova Scotia Human Rights Tribunal’s original decision that denial of medical cannabis coverage constituted discrimination. The Tribunal had previously ordered the Welfare Fund/Union to cover the costs of medical cannabis under their benefits plan.

Background

Gordon Wayne Skinner was involved in a motor vehicle accident while on the job. He suffers from extreme pain and liver disease, resulting in devastating financial hardship. His doctor recommended medical cannabis and asked his union to cover the costs, just as they had done for his previous medications (including opioids) which didn’t work and had extreme side effects. The union not only denied his request, but they have continued to fight the case and exhaust legal resources instead of caring for the person they are purported to represent.

Gordon and his family aren’t alone in their plight. 60% of Canadians who are prescribed medical cannabis cannot afford the dose their doctor recommends. Families like Mr. Skinner’s are being forced to make unfathomable choices – food and electricity versus medication.

Yet, some unions don’t think it’s necessary to fully consider the ramifications of denying medical cannabis coverage. At the same time, the federal government is moving towards applying a sin tax on medical cannabis. These types of short-sighted policies are hurting sick Canadians.

“CFAMM is actively exploring all options to continue supporting Mr. Skinner’s case” said James O’Hara, President and CEO of CFAMM. “Affordability of medical cannabis is our priority. We will continue to strongly advocate on all fronts – we will not back down.”

“This decision is devastating. My own union is doing everything they can to deny coverage to the only medication that works for me, while myself and my family are left to suffer” said Gordon Wayne Skinner. “I am very thankful for the support of CFAMM and Aurora Cannabis thus far and feel assured that the medical cannabis community is fully behind me as we consider potential remedies.”

The full decision can be found here: http://www.courts.ns.ca/Decisions_Of_Courts/documents/2018nsca31.pdf

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CFAMM Appoints James O’Hara as President and CEO

Canadians for Fair Access to Medical Marijuana (CFAMM) is pleased to announce the appointment of James O’Hara as full-time President and CEO. James has been with CFAMM since August 2017 as Head of Partnerships and Strategy. In his new role as President and CEO, James will be responsible for the day-to-day operations and implementation of CFAMM’s strategic plan in addition to his current responsibilities with partnerships.

James is a seasoned senior leader who previously held roles including Vice President & Director TD, Senior Director CIBC, and as a Management Consultant providing relationship management, communications, and leadership services to clients across industries.

This appointment marks the continued growth of CFAMM, Canada’s largest and most active non-profit medical cannabis advocacy group. Jonathan Zaid, CFAMM’s Founder and current Executive Director, will stay on with CFAMM in a new capacity to continue offering guidance in his areas of expertise including policy, strategic communications, and insurance coverage.

“We are thrilled to appoint James as President and CEO. James is a passionate individual who takes medical cannabis seriously. His experience, drive, and integrity will ensure that CFAMM continues to represent patients and their rights effectively” said Jonathan Zaid, Founder, CFAMM.

“My goal is to make a positive difference in people’s lives and my role at CFAMM enables me to do just that” said James O’Hara, President and CEO, CFAMM. “I look forward to building upon the incredible work Jonathan and our team are working on to ensure Canadians have affordable access to the medicine they need.”

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Budget 2018: What it means for medical cannabis

Background

In November 2017, the federal government announced a proposal to apply an excise/sin tax to both non-medical and medical cannabis after legalization. The excise tax is proposed to be applied at the rate of $1/gram or 10% of the product price (whichever is greater of the two) in addition to the pre-existing GST/HST sales tax.

On February 27th, the federal government further solidified their plan in their 2018 budget (see pg. 177). Although lots of details are still uncertain, we broke down what the latest announcement potentially means for patients. We know many are disappointed with this news and will continue strongly advocating for the elimination of tax.

Announcement Highlights  

  • The proposed excise tax framework will generally apply to cannabis products that contain THC
  • Low-THC, CBD oils (under 0.3% THC) will not be subject to the excise tax
  • Pharmaceutical products on prescription (with a DIN) and derived from cannabis will be exempt.
    • This refers to prescription cannabis-based medicines like Sativex (which currently are zero-rated/exempt from tax anyway).
  • Work will be undertaken by Health Canada to evaluate the drug review and approval process so that Canadians in need have better access to an array of medicinal options.
  • The Government will also examine options for establishing a rebate program to retroactively reimburse Canadians an amount in recognition of the federal portion of the proposed excise duty that was imposed on equivalent products prior to them being given a Drug Identification Number.
    • It is currently unclear what this means for patients and how it would be applied. We are working to get further details. 
  • Sales tax (GST/HST) will continue to apply

This is not yet implemented and may still change. The government has stated they intend to bring these changes into effect upon the implementation of non-medical cannabis legalization. 

Full details can be found in Budget 2018 (pg. 177) and in Tax Measures: Supplementary Information (pg. 40).

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Budget 2018 Response

PATIENTS OUTRAGED TO SEE MEDICINE TAXED IN FEDERAL BUDGET

TORONTO – Canadians for Fair Access to Medical Marijuana (CFAMM) expressed outrage on behalf of patients across Canada after learning the federal budget would apply a sin tax to medical cannabis.

CFAMM has been campaigning against the government’s misguided plan to tax medical and recreational cannabis at the same rate since the government first floated the idea in a discussion paper from the Minister of Finance.

“We have heard from tens of thousands of patients across the country” said Jonathan Zaid, Executive Director of Canadians for Access to Medical Marijuana (CFAMM) “This new tax adds insult to injury for a community of patients already struggling to afford their medicine.”

Medical cannabis patients rarely have the cost of their medicine covered by insurance and it is also the only medicine to which a sales tax is applied. A recent Environics poll found that a majority of Canadians (62%) are opposed to taxing medical cannabis. And to date, over 16,000 Canadians and a group of 12 non-profits have advocated for the elimination of it. Despite this fierce opposition, the federal government decided to forge ahead, implementing the new tax in its federal budget today.

The government will exempt some products such as non-THC and low-THC medicine from the excise tax but those products represent a small minority of those used by patients. “It’s quite clear that Canadians understand that taxing medical cannabis is unfair and wrong,” said Jonathan Zaid. “Exempting a small minority of patients does not address the affordability issue and implies some patients are more legitimate than others. Looking into a reimbursement program implies patients can afford to pay for their medicine in the first instance. They can’t”.

Despite disappointment with the approach to taxation, CFAMM was pleased to see that Health Canada will evaluate the drug review and approval process to ensure it keeps up with cannabis developments but urged the government to commit to meaningful timelines and invest urgently in medical cannabis research to ultimately work towards the full zero-rating of medical cannabis.

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