Pubdate: Fri, 29 Jan 2016
Source: Guelph Mercury (CN ON)
Copyright: 2016 Metroland Media Group Ltd.
Contact:  http://www.guelphmercury.com/
Details: http://www.mapinc.org/media/1418
Author: Bruce Cheadle
Page: A8
Referenced: http://mapinc.org/url/M8hr2Qpz

GOVERNMENT REVENUES FROM LEGAL POT COULD REACH $5B A YEAR, CIBC
SAYS

OTTAWA - Call it Prime Minister Justin Trudeau's secret stash.

A new report from CIBC World Markets says Canada's federal and
provincial governments could reap as much as $5 billion annually in
tax revenues from the sale of legal marijuana.

CIBC economist Avery Shenfeld crunched the numbers using current
estimates of Canadian recreational pot consumption, the revenue
experience in U.S. states that have legalized, and other factors.

"The bottom line is that federal (and) provincial governments might
reap as much as $5 billion from legalization, but only if all the
underground sales are effectively curtailed," writes Shenfeld.

"That's on the order of 0.25 per cent of GDP, no barnburner."

The Liberal government has promised to legalize, tax and regulate
marijuana and has made MP Bill Blair, the former Toronto Police chief,
the lead on investigating a new regulatory model.

Trudeau maintains that legalized pot will not be a cash cow, and all
revenues will be used to address mental health and addictions issues.
"It was never about a moneymaker, it was always about public health,
public safety," Trudeau said in December.

The experience of Colorado and Washington, where pot sales were
legalized, suggests no dramatic increase in marijuana usage but a
potential for pot tourism.
- ---
MAP posted-by: Matt