Canada's Legalized Marijuana's Tax Haul Won't Be That High: Budget Office
The parliamentary budget watchdog says that tax revenues arising from marijuana sales will be modest when legalization first takes hold — hundreds of millions of dollars, rather than billions.
In a report released yesterday, the parliamentary budget officer says sales tax revenue could be about $618 million in 2018, or even as high as $959 million depending on tax rates, based on projections that legalized cannabis will cost $9 per gram.
The majority of tax revenues — 60 per cent — will flow to provincial governments, with the rest going into federal coffers.
The report also says the federal government may have little fiscal space to tax cannabis in the same way as tobacco without pushing the legal price well beyond that of illegal pot.
Even with only a sales tax, legal cannabis prices in 2018 will likely be as high as illicit market prices this year.
The parliamentary budget...
This marijuana news is brought to you by 420 Intel. For the latest breaking cannabis industry news, subscribe to the 420 Intel newsletter. If you'd like to promote your product or service in this area after every article, contact us.
Follow us on Instagram
Connect with us on Linkedin