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Canada, provinces agree on deal to split proposed federal pot tax

OTTAWA, Dec 11 (Reuters) - The Canadian government and the 10 provinces on Monday agreed on a deal on how to split a proposed federal tax on the sales of marijuana once the drug is legalized, Finance Minister Bill Morneau said.

Morneau told reporters that for an initial two years, 75 percent of the revenue would go to the provinces and 25 percent to Ottawa. The government had initially suggested a 50-50 split, an idea the provinces rejected on the grounds it was not enough to help cover the extra costs of enforcing the new rules once they come into effect next July. (Reporting by David Ljunggren; Editing by Chris Reese)