With Prime Minister Trudeau having promised during this year’s federal election campaign to, “Design a new system of strict marijuana sales and distribution, with appropriate federal and provincial excise taxes applied,” Canada is now closer than ever to seeing what kind of tax money the pot industry can actually produce.
In a column written by BC Director Jordan Bateman, it’s noted the Canadian Taxpayer Federation doesn’t oppose legalizing marijuana — but it does disagree with those who view it as a government cash crop.
This is Federal Director, Aaron Wudrick:
A 2012 study estimated national marijuana sales at $4.6 billion per year, but the CTF notes that’s total revenue and not potential tax revenue.
It further notes that in Colorado — the first American state to legalize pot — tax revenue is on pace to hit $126 million this year, or less than 15 per cent of total marijuana sales of $923 million.
Thus it adds, if Canada used a similar tax rate, it would generate $628 million per year in tax revenue, and while that may sound like a lot of money, it is actually less than one-quarter of one percent of this year’s federal government total projected revenue.