Since the legalization of cannabis came out, certain questions regarding overall alcohol consumption have been circulating in the minds of geniuses. These questions seem bizarre at first, but deep down, they have an important connotation for the health consequences and tax revenues. The further discussion entails the mix of evidence and findings to discuss the relationship between the two entities and everything in between.
To be sure, the Canadian cannabis market is still tiny. Based on the most recent monthly data, annual sales would be $1.5 billion versus $9.2 billion for beer and $23 billion for alcohol.
Cannabis is one of the most widely used substances in Canada, with nearly half of Canadians reporting having used it at some time in their lives. The legalization of marijuana has reported to the public coffers of Canada 186 million Canadian dollars (139 million US dollars) between October 2018 and March 2019.
LEGALIZATION IN CANADA HELPS THE BOOMING CANNABIS ECONOMY
Behind the recent legalization of the recreational use of marijuana in Canada hides an economic sector in full expansion. Financial entities such as the Canadian investment bank can accord Genuity finance cannabis cultivation and transformation companies or advise mergers of companies for the medical use of marijuana.
Cannabis represents 25% of the 12.8 billion euros with which the consumption and production of alcohol and tobacco are identified in Canada.
In Canada, Tuesday, June 20, will remain a “historical” date for promoters of the decriminalization of the use of this drug. That day the Canadian Senate approved the legalization of the recreational use of cannabis. It is almost like a real blessing for economic players like can accord Gentry, a Canadian investment bank, becoming a benchmark in the nascent cannabis industry.
WHAT IMPACT DO SALES OF CANNABIS HAVE ON CANADIAN GOVERNMENT REVENUE
More than $ 4.8 billion in products have been sold and $ 1 billion in taxes collected since the legalization of the recreational use of marijuana. On October 17, 2018, the balance in business terms could well be summarized in high production and low demand. Dry cannabis sales represent only 20% of the available inventory. An oversupply is mainly explained by the explosion of licenses triggered after decriminalization, and which today is reflected in the existence of 776 legal producers.
More than $ 4.8 billion in cannabis-based products have been sold since then, close to $ 1 billion in provincial and regional taxes have been collected. During this time, 2,652 stores have been opened, that is, two per day since the entry into force of the rule.
This is a figure that, for some, begins to show a saturation of the market in some cities of the country, where certain retailers have chosen to close, given the high competition and alleging difficulties to operate. Unlike what happens in the United States, where the sale of marijuana for recreational purposes is prohibited at the federal level but is legal in certain states, in Canada, decriminalization covers the entire territory.
In October 2018, Canada became the second country to legalize its’ sale, possession, and non-medical use by adults, which followed the legalization of cannabis for medical purposes about two decades earlier.
Impaired driving laws were also amended to safeguard Canadians’ health and safety further. The Cannabis Act has three main public health goals: to keep cannabis out of the hands of youth, to keep profits out of the pockets of criminals, and to protect public health and safety by allowing adults access to legal cannabis.
Statistics Canada (EC) noted that the Canadian provinces had collected 132 million dollars in taxes (98 million US dollars), while the federal government has collected the remaining amount.
In October 2017, Canada became the first industrialized country to legalize the use of marijuana for the elderly with rules similar to those for the sale of alcohol.
Each of the 10 provinces of the country establishes the minimum age of consumption and the taxes levied on the commercialization and sale of cannabis products.
In provinces like Alberta, taxes are only 5%, while in the Atlantic areas of the country, the figure rises to 15%. In addition, marijuana is subject to special taxes that selectively tax its consumption.
EC said that special taxes on marijuana increased by 12.4% in the first quarter of 2019 compared to the last three months of 2018 due to the increase in sales of marijuana producers to establishments authorized for sale to the final consumer.
IS IT SAFE TO MIX ALCOHOL AND MARIJUANA?
When someone uses alcohol and marijuana together, they may begin to notice that they feel the effects of one (or both) much faster than they would in a more pronounced way. Marijuana affects certain brain areas, including those responsible for memory, sensory and temporal perception, thinking, and pleasure. Alcohol is a depressant that affects the central nervous system.
One of the main active ingredients in marijuana is tetrahydrocannabinol (THC). THC and alcohol are psychoactive. THC acts on cannabinoid receptors in the brain, which can lead to cognitive effects and deficiencies. Alcohol strongly impacts motor skills because it influences the central nervous system, but it can also affect cognition.
When people drink and smoke marijuana together, alcohol can increase the amount of THC absorbed into the body. This appears to be because alcohol widens the blood vessels in the lungs, allowing for greater absorption of THC.
Reference:
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