Saskatchewan Budget 2019: Province expecting marijuana tax revenues to bring in $5M

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The Government of Saskatchewan is banking on pot sales to make a small contribution to this year's bottom line.

The 2019-20 budget estimates the province will make $5 million this year, the first full year of legalization.

The province expects PST on pot sales will bring in $2 million while federal excise tax is expected to account for $3 million.

For the province to generate $2 million in PST, total pot sales would need to equal $33.3 million. in the first three months of legalization, Saskatchewan trailed the rest of the country in sales, bringing in only $2.5 million.

Like many jurisdictions, Saskatchewan marijuana sales were hindered by supply problems in the first months of legalization, with many stores closed due to lack of product. 

While marijuana revenues are expected to increase, the province is expecting a decline in other 'sin taxes' this year.

Tobacco taxes are expected to bring in $234 million dollars this year, a decline of $25 million from 2016.

Revenue from the Saskatchewan Liquor and Gaming Authority are also expected to drop. SLGA revenues are expected to bring in $477 million, a decrease of $10 million from predicted 2018 numbers.

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