Cannabis taxes brought a lot of money to Canadian coffers. The Canadian government has collected more than CA$1 billion (about €690 million) in total taxes on cannabis products since cannabis was legalized for recreational use in 2018.
Read more about the cannabis industry in Canada and how much money the government raises from cannabis taxes, and find other important cannabis news from around the world with the Hemp.im mobile app.
Broken down by industry, dried/fresh cannabis flowers account for the majority of tax revenue
In fiscal years 2018 through 2021, taxes collected on cannabis flowers accounted for 79.2% of the total. Overall, cannabis extracts, including oil, accounted for 16.5% of the total tax. Tax revenue in the Edibles segment increased from CA$ 1.2 million in 2019 to approximately CA$ 6.5 million by 2021. During fiscal 2020-2021, the tax on cannabis cosmetics was CA$ 973,000. Seed and fiber hemp figures were not published.
Officials have not yet released the comparative figure for the fiscal year 2022. But preliminary figures show that Canada’s government expects to collect CA$160.2 million in revenue from cannabis taxes this year. This brings the total tax revenue since 2018 to at least CA$1.02 billion.
How much could Germany raise from cannabis taxes?
According to a study by competition economist Justus Haucap of the University of Düsseldorf, the legalization of cannabis would generate revenues of up to €4.7 billion for the state. The study is based on comparative data from countries such as Canada, where cannabis is already legal. Cannabis consumption in Germany can be estimated on the basis of these co-countries. From this, the revenue from taxes and duties can be calculated.
In the study, however, not only tax revenues and social security contributions were taken into account, but also savings in law enforcement and justice. According to the study, a pure cannabis tax comparable to the alcohol tax could bring around €1.8 billion into the state coffers. In addition, there would be trade and corporate income tax, sales tax, and, of course, payroll tax. The additional tax revenue would add up to around €2.8 billion. Then there are the savings in law enforcement. All in all, this adds up to a whopping €4.7 billion. These are lost in Germany every year.
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First published in HanfJournal, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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