Nearly half a billion dollars in tax revenue could be generated, if cannabis is legalised
Nearly half a billion dollars in tax revenue could be generated, if cannabis is legalised
1 May 2020
The referendum on whether to legalise cannabis for personal use will sit along aside the General Election on September 19.
It's non-binding but both Labour and National have said they'll abide by the outcome.
The New Zealand Institute of Economic Research found a new tax on the plant, on top of GST, could generate up to 490-million dollars a year -- but it will need to displace the illegal market entirely.
Principal Economist Peter Wilson says a lot of that money will come from heavy users.
He says in Colorado, those who smoke at least once a day contribute to around 70 per cent of cannabis sold in the regulated market.
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