That’s the verdict of a new report from CIBC World Markets which has suggested that legalising the controversial drug would pour as much as $10billion into the economy every year.
Using a financial model built around Colorado’s experience of legalisation, economists have concluded that the marijuana market could far surpass original predictions – which put it at around $3billion on an annual basis.
During 2014, legal sales of the drug reached $700million – and during 2016, they are expected to reach $1billion. Now, the report suggests that when transferred to Canadian dollars, the industry over here could reach $10billion per year: especially if a tax of around 50 per cent is placed on the sales.
This figure, of course, will only be achieved if all underground sales are wiped out. This, in turn, raises questions about implementing such a substantial tax because it might be the case that legal marijuana is more expensive than marijuana on the black market: which would likely mean that many people continue to buy the drug from illegal sources.
The Liberal Party’s Prime Minister Justin Trudeau has pledged to legalise, tax and regulate marijuana but has stated the cash generated will not be used as revenue stream for the government and will instead be diverted into public health and addiction treatment programs.
What do you think about the legalisation of pot? Is it the right move? Leave a comment with your thoughts below.
Marijuana + sales tax = a windfall for the Canadian economy.