Legalize cannabis use in Spain would represent 3,312 million income per year
Spain would enter 3,312 million euros annually in taxes and quotations if cannabis use is legalized in our country, according to a study conducted by the Drug Policy Unit of the Psychology and Speech Therapy Service of the Autonomous University of Barcelona (UAB).
According to the study, if cannabis use is legalized in Spain 101,569 jobs would be regularized to produce the 820,597 kilograms needed to supply the legal demand.
"It is not expected that legalization will lead to the eradication of the black market but a strong weakening of criminal networks because we estimate that their market share would be reduced to 15% of the total," according to the authors of the study.
The calculations are made assuming that the Spanish model of regulation of cannabis would contemplate three ways to supply: self-cultivation (tax-free), cannabis social clubs (without commercial component but their workers would be taxed) and free market (subject to taxes).
The total turnover would be 8,514 million euros per year, which would raise 1.021 million in VAT, 486.6 million excise taxes (similar to tobacco but with a low tax burden to be competitive with the black market), 371 million corporate taxes, 1,407 million IRPF and Social Security contributions (workers of companies, cooperatives and cannabis social clubs) and 26 million in taxes derived from exports.
On Wednesday, Canada will become the first G20 country to legalize cannabis for recreational purposes, which will bring an increase in tax collection, direct and indirect, and regularize jobs so far clandestine, with the consequent payment of Social Security and Personal Income Tax payments.
