Poland would earn $4 billion thanks to legal marijuana.

The Central Statistical Office calculated that the illegal “grey” marijuana market in Poland generated a total of $62 billion in 2016. They assume, optimistically, that the grey market is shrinking. However, there are experts who present a completely different opinion. They claim that the grey market is underestimated, and may even constitute over half of the cannabis market.

Furthermore, there is no indication that the Polish government would like to loosen the regulations on the recreational use of cannabis. Today, there is a possibility to use only cannabis-based medicines legally. The problem is bureaucracy. Few companies can obtain a state license for the cultivation and processing of industrial cannabis. One of these companies is HemPoland.

The green side of the power plant

If those in power were to legalize the use of marijuana, we would face a new source of revenue. It is estimated that about 500 tons of marijuana is consumed in Poland every year. The average cost per gram of drug is about $40.

It would probably use the same rate for tobacco products (i.e. 31.41% of the net price and $50 for every 1,000 pieces). This gives us about $3.5 billion of the income from this tax. The next tax would be VAT (23% rate). The state could earn about $1.2 billion on this.

Benefits from cannabis legalization

The end of cannabis prohibition entails significant savings in the country’s finances. An exceptionally high cost of fighting drugs is, for example, the action of the police. It is estimated that the time spent arresting cannabis smokers is more than 300,000 man-hours.

This costs the state over $1.2 million annually. “This amount would allow us to spend it on combating other crimes,” says Natalia Janusz, an expert of the Free Cannabis Association and the author of scientific papers on the effects of legalization of cannabis.

That’s how it’s done in America

Today, in more than half of the states of the United States, marijuana is available for medical use. In 2012, there was a breakthrough. Washington and Colorado were the first countries to allow the recreational use of weed. Six other states joined the group, including Massachusetts and California.

It turned out that allowing the use of cannabis did not trigger an addiction epidemic, or at least there are no studies to confirm it. The added value, however, is the creation of many jobs and also the provision of revenue to the budget.

Tax revenues from cannabis legalization

Nevada, in the first six months since the release of cannabis, earned $30 million dollars from taxes. In Colorado, on the other hand, in 2016-2017 budget received $105 million dollars from the sale of legal cannabis. The drug is one of the highest-taxed products in this state.

The excise duty itself is 25 percent, and the sellers pay 2.9 percent of the profit. The Colorado authorities, thanks to the proceeds from this source, have the cash to build housing for their poorest people. Also, this paid for new health programs.

According to New Frontier Data’s calculations, if all 50 states agreed to trade in cannabis, tax revenues would amount to nearly $132 billion (2017-2025) and the labor market would gain 1 million new jobs.

—

(Featured Image by aganyga)

First published in money, 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. Hemp.im 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. Hemp.im 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.