The economic benefits of cannabis legalization in Switzerland

The economic benefits of cannabis are often overlooked when it comes to legalization. However, cannabis legalization is important for the economy and new tax revenues. 

Similar to tobacco, illegal cannabis products today could also be subject to taxes. Beat Flach (GLP), National Councillor of Aargau, submitted a postulate on this subject to the Federal Council a year ago. 

In this postulate, he asked, among other questions, which tax substrate for the AHV/IV could be generated by the legalization of cannabis if it were taxed analogously to tobacco. Flach also wanted to know the economic benefits of cannabis legalization.

In the first year of retail sales, cannabis producers in Canada and other countries in the cannabis industry generated more than $1.1 billion in revenue. However, this figure is expected to increase when THC edibles will be available for sale.

The cannabis industry is becoming very popular in the emerging markets and one prominent example is Europe’s CBD and hemp sector, predicted to be worth $14.67 billion by 2026. 

These new industries can be difficult to navigate, but cannabis news apps like Hemp.im provide some clarity and can help prospective investors understand the market. 

High volume of consumers and high tax revenues are some economic benefits of cannabis legalization

The Federal Council referred to a study currently being carried out in the cities of Geneva, Basel, Zurich and Berne. However, the results of this study will not be available until spring 2021.

If the drug were legal, the state could make a good living. Instead, cannabis is happily traded behind the backs of the state and Swiss taxpayers.

The product has many customers on the black market. According to the Federal Office of Public Health, cannabis is the most commonly used illegal substance in Switzerland. 

More than a third of the population in Switzerland has used cannabis at least once in their lives and a good 3% of the population currently uses it.

The future of cannabis legalization in Switzerland

Oberland commuters should not have missed the occasional cannabis consumption in the railway station underpasses; a sweet smell of approaching economic success when cannabis legalization comes before the people again. 

That is the hope of the Cannabis Consensus Association. It wants to promote a popular initiative. However, it could take even longer for this to be completed.

Unfortunately, a lot of illegal smoke will be blown into the Swiss sky until something changes. People hope that a new initiative can count on more encouragement than the last decision for the sake of the economy.

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(Featured image by Steve Johnson via Unsplash)

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

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