Only two countries in the world have made cannabis or marijuana completely legal. Two of these countries are Uruguay and Canada. As a result, Canada is the only developed country to have allowed recreational marijuana use and sale. The newly passed bill by the Canadian government has spurred a heated debate on both sides. However, many observers believe that the real reason behind Canada’s marijuana legalization is plainly economical. The economic consequences of cannabis legalization in Canada will be examined in this essay.
The Economic Benefits of Cannabis
Some of the most often mentioned economic benefits by pro-cannabis proponents are as follows:
Taxes
Cannabis sales in Canada are expected to be between $5 billion and $8 billion per year. This program’s detractors argue that it generates no new economic activity. This annual sum of $5 billion to $8 billion was already a component of the Canadian economy. It was not accounted for since it was illegal. However, now that it is legal, it will be accounted for.
This discrepancy, though, is not inconsequential. Because cannabis sales are now legal in Canada, the Canadian government will tax them. The Canadian government has decided to tax marijuana at $1 per gram or 10% of the retail price, whichever is greater. This means that the Canadian government will collect an extra $500 to $800 million in taxes per year! Individual states will keep around 75% of the proceeds from the sale. As a result, cannabis legalization will directly result in a large increase in revenue for the Canadian government.
Furthermore, it is predicted that the money earned by employment taxes will greatly grow. Until recently, drug dealers’ revenues were illegal. As a result, they were exempt from taxation. Shops for cannabis in North Edmonton will now be allowed to profit legally. As a consequence, they will have to pay taxes. Furthermore, the wages of thousands of employees will be taxed. As a result, the Canadian government will benefit greatly.
Lesser Government Expenses
Cannabis legalization is a bonanza to the government. This is due to a substantial gain in income but a significant drop in expenses. If the possession and sale of marijuana are decriminalized, the number of offenders in Canada will fall dramatically because a family owned cannabis business can take over the illegal drug trade. There will be no drug gangs conducting drug-related violence on Canadian streets. The demise of these gangs will result in considerable savings in law enforcement costs for the Canadian government. Furthermore, as the number of people imprisoned decreases, so will the cost of running prisons and, eventually, the cost of rehabilitating inmates.
Tourism Impact
The US government is resuming its war on drugs in several northern states. Furthermore, cannabis consumption is illegal in many other countries. These people are likely to be drawn to Canada as a holiday location. The Canadian government is ecstatic about the prospect of tourists worldwide visiting Canada, and that cannabis tourism will result in large increases in both private and governmental revenue. Visit Select Cannabis website to learn more about what an a1 cannabis dispensary has to offer.
Real Estate Impact
Finally, the Canadian real estate industry predicts a positive impact from cannabis legalization. This is due to increased demand for warehouses and retail space, which benefits the real estate industry by boosting the number of commercial and industrial units sold or leased. Rental house demand is also predicted to rise. This is because states and countries that have legalized cannabis attract more tourists.
Conclusion
To summarize, the Canadian government’s cannabis legalization measures are expected to generate substantial economic benefits. Other repercussions must be considered, but if Uruguay and the Netherlands are any indications, legalizing cannabis looks to have no negative consequences.
