Cannabis Countdown: Estimating the Size of Illegal Markets and Lost Tax Revenue Post-Legalization

Summary:
Page Title:Cannabis Countdown: Estimating the Size of Illegal Markets and Lost Tax Revenue Post-Legalization – C.D. Howe Institute
Article Title:Cannabis Countdown: Estimating the Size of Illegal Markets and Lost Tax Revenue Post-Legalization
URL:https://cdhowe.org/publication/cannabis-countdown-estimating-size-illegal-markets-and-lost-tax-revenue-post-legalization/
Published Date:October 11, 2018
Accessed Date:February 9, 2025

A large black market combined with supply shortages of legal marijuana will cut potential tax revenues by an estimated $800 million in the first year of legalization, according to a new report from the C.D. Howe Institute. In “Cannabis Countdown: Estimating the Size of Illegal Markets and Lost Tax Revenue Post-Legalization,” authors Anindya Sen and Rosalie Wyonch find that government revenue forgone to black market activity will likely exceed the amount federal and provincial governments collect, a figure only between $300 - $600 million.

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