Taxes Could Help Canada Keep Its Legal Marijuana Prices in Check

Canopy Growth and other pot stocks surged to close out year
Trudeau pot czar says retail cost may need to be propped up

Packages of marijuana are seen on shelf before shipment at the Canopy Growth Corp. facility in Smith Falls, Ontario, Canada, on Tuesday, Dec. 19, 2017. Canadian medical marijuana is setting the stage to go global. The country's emerging legal producers have a chance to seize opportunities in other countries that could make them worldwide leaders, according to Canopy Growth Corp. Chief Executive Officer Bruce Linton.Photographer: Chris Roussakis/Bloomberg

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By Josh Wingrove

January 2, 2018 at 9:00 AM UTC

This article is for subscribers only.

Justin Trudeau’s marijuana czar is warning that policy makers may need to adjust taxes to prevent prices from falling too low after legalization.

Canadian marijuana companies -- which have surged in value -- will achieve economies of scale that will help drive down production cost, according to Bill Blair, the lawmaker and former Toronto police chief leading the legalization effort.