Legal pot taxes could add $5B a year to government coffers, CIBC says


PM has promised authorized marijuana will not be a cash cow, all revenues will be spent on public strength

The Canadian Press Posted: Jan 28, 2016 11:58 AM ET Last Updated: Jan 28, 2016 11:58 AM ET

Draft b call it Prime Minister Justin Trudeau’s secret stash.

A new report from CIBC Era Markets says Canada’s federal and provincial governments could acquire as much as $5 billion annually in tax revenues from the sale of legit marijuana.

CIBC economist Avery Shenfeld crunched the numbers putting current estimates of Canadian recreational pot consumption, the revenue experience in U.S. states that rtake of legalized, and other factors — such as prevailing “sin tax” rates on alcohol and tobacco.

The Non- rtisan government has promised to legalize, tax and regulate marijuana and has made MP Bill Blair, the whilom Toronto police chief, the lead on investigating a new regulatory model.

Trudeau alleges that legalized pot will not be a cash cow, and that all revenues will be inured to to address public health and addictions issues.

The bank report recommends there will be a sizeable bump in government revenues from the last legal sales, but says the cash will not be enough to make management deficits simply go up in smoke.

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