Pot tax would reduce profits, allow black market to thrive: report
Ottawa may not be able to tax cannabis in the same way as tobacco without pushing the price well beyond that of illegal pot
The Globe and Mail (Canada)
Tuesday, November 1, 2016
Tuesday, November 1, 2016
The parliamentary budget watchdog says Ottawa stands to generate hundreds of millions of dollars – not billions – from the first year of recreational marijuana sales, and that the black market will continue to bloom if the federal government applies much more than a sales tax on legal pot. The Office of the Parliamentary Budget Officer says sales tax revenue could be as low as $356-million and as high as $959-million, with a likely take of about $618-million based on legalized retail cannabis selling for $9 per gram – in line with current street prices.
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