The legalization of marijuana could potentially create a high stream of new revenue for the government of Canada.
According to a new report from CIBC World Markets, Canada’s provincial and federal governments can earn up to $5 billion annually in tax revenues solely from legal marijuana sales.
Avery Shenfeld, a CIBC economist crunched $5 billion by estimating how many Canadians use pot recreationally, while also looking at the revenue Colorado has created since legalizing marijuana. Shenfeld also factored in “sin tax” rates on tobacco and alcohol.
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While the idea of legalizing marijuana in British Columbia has been looming in the air for quite some time, Justin Trudeau gave the idea real light when he promised to legalize and regulate marijuana during his Prime Minister campaign.
While the timeline on the legalization still remains unclear, we do know something is in the works as Trudeau has hired the former Toronto police chief to investigate and create a new regulatory model.
Trudeau has also stated that all revenues generated will be use to address public health and addictions issues.
Trudeau maintains that legalized pot will not be a cash cow, and that all revenues will be used to address public health and addictions issues.