Connect with us

Cannabis

Canada Raised Over 1 Billion in Taxes from the Cannabis Industry Since Legalization

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. That brings the total tax revenue since 2018 to at least CA$1.02 billion. The legalization of cannabis in Germany would generate revenues of up to €4.7 billion for the state.

Published

on

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.

__

(Featured image by Kindel Media via Pexels)

DISCLAIMER: This article was written by a third-party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in HanfJournal, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.

Helene Lindbergh is a published author with books about entrepreneurship and investing for dummies. An advocate for financial literacy, she is also a sought-after keynote speaker for female empowerment. Her special focus is on small, independent businesses who eventually achieve financial independence. Helene is currently working on two projects—a bio compilation of women braving the world of banking, finance, crypto, tech, and AI, as well as a paper on gendered contributions in the rapidly growing healthcare market, specifically medicinal cannabis.