UK Urged to Legalise Marijuana, and Enjoy Tax Revenues

June 5, 2018 Taxation in UK

marijuana legalisationLONDON – If the UK legalized and taxed marijuana, it could use its new tax revenues to cover some of the significant costs of the national healthcare system.

A new report released by the international development organization Health Poverty Action (HPA) is calling on the government of the UK to legalize and regulate the market for recreational and medical marijuana and to use the ensuing tax revenues to fund the national healthcare system.

The researchers at the HPA claimed that many countries in the world are turning towards legalization, and that “…prohibition has failed”.

If legalization and regulation were to take place, and the taxation of marijuana sales was similar to the taxation of alcohol or tobacco, the estimate for the arising tax revenues is between GBP 1.9 billion and GBP 3.5 billion per year.

The researchers also noted that if the regulation were to work via the system of taxation and licenses used in the states of Colorado and Washington, the incomes could be as high as GBP 2.26 billion per year.

Further, if the tax were to be similar to the system and results in the Netherlands, the income level would be GBP 1.4 billion.

The HPA pointed out that the national healthcare system could greatly use the potential funds, and it was highlighted that even the most conservative estimates would see tax revenues equivalent to the basic salaries of all the midwives in the UK each year.

It was further noted that legalization of marijuana could lead to reduced crime rates, reduced policing costs, and, based on international evidence, reduced binge drinking levels.