Canada: Alberta to eliminate 2% early payment fee for cannabis producers

The Alberta Government announced on Thursday, February 26, 2026, that it will be getting rid of its 2% early payment fee for producers selling into the province as of April 1, 2026.

The fee applies to payments from Alberta Gaming, Liquor & Cannabis (AGLC) to producers for their products sold in the province within 15 days, rather than the standard 60-day turnaround.

The announcement was shared to coincide with the release of Alberta’s Budget 2026 on February 26, 2026.

“We know that this has been a concern for licensed producers and we are excited to be able to make this adjustment to support Alberta’s cannabis industry,” wrote AGLC CEO Kandice Machado in a memo shared with cannabis producers.

She says the agency is also looking at removing an additional 2% fee added for potentially damaged or returned cannabis products.

“The changes will be implemented for all orders on April 1, 2026, and going forward,” noted the memo. “AGLC has also reviewed the two per cent damage fee and the results of that review will be shared with industry at a later time. AGLC recognizes the value of licensed producers and is committed to continue to find ways to maintain a viable cannabis supply and support the cannabis industry.”

In addition to bringing in $0.75 of every $1 of excise tax the federal government collects on wholesale cannabis sales into Alberta, Alberta also has the second-highest duty rate for cannabis in Canada at 16.8% (only Nunavut is higher, at 19.3%), along with other markups.

As part of its Budget 2026, Alberta’s share of cannabis tax revenue is expected to be $229 million in 2026-27, increasing to $236 million by 2028-29 due to population growth.

The Alberta Gaming, Liquor and Cannabis Commission (AGLC) reported $66.6 million in net revenue from $693 million in wholesale cannabis sales for the fiscal year ending on March 31, 2025, bringing in just over $7 million in net income for the province.

The AGLC has also made several changes to its cannabis regulations over the past year. In July 2025, the regulator announced it was opening up licensing for cannabis farmgate stores. The first opened in February 2026.

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Alberta to eliminate 2% early payment fee for cannabis producers

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