Australia: cannabis legalization could bring in $3.6 billion in taxes over 4 years

Legalizing cannabis could bring $2 billion a year to the Australian economy, and the equivalent of $3.6 billion in tax over 4 years, according to Australian Department of the Budget.

The Green Party recently proposed the legalization of cannabis. According to their plans, cannabis would be taxed and regulated by the government, in the same way as alcohol and tobacco. Self-cultivation would also be authorized, up to a maximum of 6 plants per person, for personal use.

The Australian Department of the Budget has based its estimate on a fee of 25%. A production license could also cost 3500$, with annual fees going up to 2300$ depending on the size of the plantation. However, the Ministry warned that its estimates were limited by the limited information available on current cannabis consumption and black market prices. It therefore based its estimates on an average consumption of 3 grams per week for the average consumer.

Richard di Natale, leader of the Green Party, believes that the Budget Ministry's estimate shows that cannabis legalization is a socially viable project, as well as being economically interesting.

«The Greens» plan to legalize cannabis for adults will bring billions of dollars to the Treasury that will fund drug prevention and treatment, and provide a boost in funding for our hospitals and Medicare [Ed. note: Australia's Social Security system]."

«We need to be pragmatic about cannabis. Around 7 million Australians use cannabis despite the risk of prosecution.»

The Australian government, however, has refused to support the Greens« proposal. Health Minister Greg Hunt last week called cannabis a »gateway drug«, while Labor leader Bill Shorten accused the Greens of »fishing for votes".

Yet Australia has legalized the medical use of cannabis and aims to become one of the world's leading cannabis exporters in the world.