The Economic Impact of Cannabis Legalization on Canada

The Economic Impact of Cannabis Legalization on Canada

Only two countries on Earth have legalized cannabis or marijuana completely. Together with the United States of America, Uruguay is two of these countries. As a result, Canada is the only developed country to have allowed recreational marijuana use and sale. The newly passed measure by the Canadian government has spurred an intense debate on both sides. However, many observers believe that the real reason behind Canada’s marijuana legalization is plainly economical. This post will look at the economic impact of legalizing cannabis in Canada.

The Economic Benefits of Cannabis

The following are some of the economic benefits typically stated by pro-cannabis advocates for you to learn and find out more:

Taxes

Annual marijuana sales in Canada are expected to reach between $5 billion and $8 billion. According to critics of this scheme, it generates no additional economic activity. This annual sum of between $5 billion and $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 distinction, however, is not trivial. Because cannabis sales are officially legal in Canada, the government will tax them. Canada’s government has chosen to tax marijuana at a rate of $1 per gram or 10% of the retail price, whichever is greater. This results in an additional $500 to $800 million in annual tax revenue for the Canadian government! Individual states will retain around 75% of the additional funds raised through the sale. As a result, legalizing cannabis will directly result in a large increase in government revenue for Canada.

 

Additionally, it is anticipated that employment taxes will provide a large boost in revenue. Until recently, drug dealers’ gains were considered illegal. As a result, they were exempt from taxation. A dispensary in North Edmonton will now be allowed to profit legally. They will be forced to pay taxes as a result. Additionally, thousands of employees’ salaries will be taxed. As a result, the Canadian government stands to gain significantly.

Lesser Government Expenses

Cannabis legalization is a bonanza to the government. This is because although income increases greatly, expenses reduce significantly as well. Decriminalizing marijuana possession and selling will significantly reduce the number of violations in Canada. There will be no drug gangs conducting drug-related violence on the streets of Canada. Eliminating these gangs will result in huge savings in law enforcement costs for the Canadian government. Additionally, as the number of people imprisoned decreases, the cost of operating prisons and, eventually, the cost of rehabilitating inmates will fall.

Tourism Impact

In some northern states, the US government has resumed its battle on narcotics. Additionally, several additional countries outlaw cannabis consumption. Canada is likely to appeal to these persons as a holiday location. The Canadian government is ecstatic at the prospect of visitors from all over the world visiting the country. That cannabis tourism will result in a huge increase in private and public revenue and prospective tourists can learn more if they view this website.

Real Estate Impact

Finally, the Canadian real estate industry predicts a positive impact from the legalization of cannabis. Increased demand for warehouse and retail space benefits the real estate industry by boosting the number of commercial and industrial properties sold or leased. Rental housing demand is also predicted to increase. This is because states and countries that have legalized cannabis attract more tourists.

Conclusion

To recapitulate, the Canadian government’s plans to legalize cannabis are expected to result in major economic benefits. Other repercussions must also be considered, but if Uruguay and the Netherlands indicate, legalizing cannabis appears to be without risk.

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