Legal Weed Would Bring Millions For Australia
August 2, 2016 Taxation in Australia
CANBERRA – Legalising marijuana would bring in millions in extra tax revenues for Australia, but it would also see a doubling of the smoking rate among adults.
According to the results of new research published in the August issue of the journal American Economic Review, Australia could see tax revenues jump by as much as AUD 1 billion if marijuana were to be legalised.
The revenues to be gathered from the sale of legal marijuana in Australia will vary based on the taxation scheme to be enacted, and it is estimated that at a minimum level the new tax revenues will amount to AUD 77 million, or to a maximum of AUD 915 million.
The tax revenue estimates are based on the assumption that all current smokers will switch to legal alternatives, however, if current smokers continue to purchase from the black market, the tax revenues will fall between a minimum of AUD 61 million and a maximum of AUD 727 million.
The research also concentrated on whether legalization of marijuana would increase smoking rates, and it was estimated that such a move would see a 38 percent increase in smoking rates among underage youth, and a double of smoking rates among adults in their 30s and 40s.