A new report suggests that governments in Canada could gain as much as $5 billion in tax revenue annually once the sale of marijuana for recreational use is legalized, reports Canadian Press. The recently-elected Liberal government promised to legalize and regulate weed, seeking to control the quality and who is allowed to use it.
In the past, the sale of pot was illegal and often controlled by gangs. But pot dispensaries are popping up across the country and entrepreneurs are eager to get in on what promises to be a very profitable industry.
Money promised for public health
It is not yet clear how it will be regulated, but a report from CIBC World Markets has estimated future tax revenues by looking at the experience in some U.S. states, and current taxes on alcohol and tobacco products.
Prime Minister Justin Trudeau has said legalized pot will not be a cash cow and has promised that the new funds will be used for public health, and particularly addiction issues.
It’s expected the new revenues will be divided between the federal government and the governments of the 10 provinces and three territories.
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