Pubdate: Wed, 09 Jun 2004 Source: Victoria Times-Colonist (CN BC) Copyright: 2004 Times Colonist Contact: http://www.canada.com/victoria/timescolonist/ Details: http://www.mapinc.org/media/481 Author: Eric Beauchesne, CanWest News Service Note: Read the full 40 page study http://www.fraserinstitute.ca/admin/books/files/Marijuana.pdf Cited: Canadian Senate report http://www.cannabislink.ca/gov/#SENATE Bookmark: http://www.mapinc.org/mjcn.htm (Cannabis - Canada) FRASER INSTITUTE STUDY: TAX LEGALIZED POT OTTAWA -- Marijuana should be legalized and then taxed like any another other product, says a study by an economic think-tank. The Fraser Institute estimates that such a move would easily generate over $2 billion a year in additional tax revenues. All that would really change is that governments, rather than criminals, would enjoy the spoils, argues the study being released today by the Vancouver-based institute. The potential tax revenue is based on the study's estimate that in British Columbia alone, the annual marijuana crop, if valued at retail street prices and sold by the cigarette, is worth over $7 billion. "Using conservative assumptions about Canadian consumption, this could translate into potential revenues for the government of over $2 billion," states the study. "In British Columbia -- as in other provinces, notably Quebec and Ontario, it is a significant crop that fuels organized crime." Study author Stephen Easton, professor of economics at Simon Fraser University and a senior fellow at the institute, estimates that there are as many as 17,500 marijuana grow operations in B.C. alone. About one quarter of Canadians admit to having used it, the study says. As such, the broader question has become not whether to approve or disapprove of production, but rather who should enjoy the spoils. "If we treat marijuana like any other commodity we can tax it, regulate it, and use the resources the industry generates rather than continue a war ... that has long since been lost," said Easton. In British Columbia, indoor marijuana cultivation and consumption appears to be higher than in the rest of Canada, it notes. The most striking difference is that only 13 per cent of offenders in the province are actually charged while that number climbs to 60 per cent for the rest of Canada. In addition, the penalties for conviction in B.C. are low, it said. Fifty-five per cent of those convicted receive no jail time. A federal bill that would have decriminalized marijuana use, but imposed harsher penalties on growers, died with the calling of the election. - --- MAP posted-by: Richard Lake