Only two countries in the world have entirely legalized cannabis or marijuana. Uruguay and Canada are two of these countries. This makes Canada the only developed country to have legalized marijuana for recreational use and sale. The Canadian government’s recently passed measure has sparked passionate debate on both sides. However, many analysts feel that the actual reason behind Canada’s legalization of marijuana is economical. This post will examine the economic impact of cannabis legalization in Canada.
The Economic Benefits of Cannabis
The following are some of the most frequently mentioned economic benefits by pro-cannabis advocates:
Taxes
Canadian marijuana sales are projected to be between $5 billion and $8 billion per year. Critics of this program contend that it results in no additional economic activity. This $5 billion to $8 billion annual sum was already a part of the Canadian economy. Because it was unlawful, it was not accounted for. However, it will be accounted for now that it is legal.
However, this distinction is not insignificant. Because the selling of cannabis is now legal in Canada, the Canadian government will tax it. The Canadian government has chosen to tax marijuana at $1 per gram or 10% of the retail price, whichever is higher. This means that the Canadian government will earn an additional $500 to $800 million in taxes each year! Individual states will retain about 75% of the new cash acquired by the sale. As a result, the legalization of cannabis will directly result in a massive boost in revenue for the Canadian government.
Additionally, it is expected that the revenue generated by employment taxes will increase significantly. Until now, drug dealers’ earnings were unlawful. As a result, they were not taxed. Cannabis stores in Edmonton will now be able to profit lawfully. As a result, they will be required to pay taxes. Additionally, the salary paid to thousands of employees will be taxed. As a result, the Canadian government will considerably benefit.
Lesser Government Expenses
The legalization of cannabis is a boon to the government. This is because income increases dramatically, but expenses also decrease significantly. If marijuana possession and sale are decriminalized, the number of offenses in Canada will reduce substantially. On the streets of Canada, there will be no drug gangs committing drug-related violence! The elimination of these gangs will result in significant savings for the Canadian government in law enforcement costs. Additionally, the number of persons imprisoned will decrease, lowering the expense of running prisons and, eventually, the cost of rehabilitating convicts.
Tourism Impact
The US government is waging a renewed war on narcotics in several northern states. Additionally, there are numerous other countries where cannabis consumption is prohibited. As a vacation destination, Canada is likely to appeal to these individuals. The Canadian government is highly excited about the idea that tourists from all over the world will visit Canada and that cannabis tourism that also offers online ordering open 24/7 will result in a significant boost in both private and public revenue.
Real Estate Impact
Finally, the Canadian real estate business anticipates a beneficial influence from cannabis legalization. This is because additional demand for a convenient location for retail space has been created, which benefits the real estate business by increasing the number of commercial and industrial units sold or leased. Demand for rental homes is also expected to increase. This is because states and nations with legalized cannabis attract more tourists.
Conclusion
To summarize, the Canadian government’s cannabis legalization initiatives are projected to yield significant economic gains. Other consequences must also be addressed, but if Uruguay and the Netherlands serve as precedents, there appears to be no damage in legalizing cannabis
