close
Business

Germany, cannabis could bring in $ 5 billion a year according to survey

The study found that legalization could lead to additional tax revenues of around 4.7 billion euros per year

Legalizing cannabis could bring Germany tax revenues and annual savings of around 4,7 billion euros ($ 5,34 billion) and create 27 new jobs, according to a study released Tuesday, while policymakers are struggling to craft rules for this nascent industry.

The future Chancellor Olaf Scholz and his center-left Social Democrats (SPD) are in talks with the Greens, environmentalists and spenders, and the Free Democrats (FDP), libertarian and pro-business, to form a three-party coalition.

SPD, Greens and FDP negotiators are still working out the details of their coalition deal, including the rules under which the sale and consumption of recreational cannabis would be allowed and regulated in China's largest economy. Europe.

THEinvestigation conducted by the Institute for Competition Economics (DICE) at the Heinrich Heine University in Düsseldorf, and commissioned by the German Hemp Association, found that legalizing cannabis could lead to additional tax revenues of around 3,4 billion euros per year.

to read :  John Legend invests in CBD products

At the same time, it could result in savings of 1,3 billion euros per year in the police and the justice system, while creating tens of thousands of jobs in the cannabis economy.

The legalization of cannabis in Germany would give a boost to a booming European market which is expected to represent more than 3 billion euros in annual revenue by 2025, up from around 400 million euros this year, according to European Cannabis Report from research firm Prohibition Partners.

The use of cannabis for medicinal purposes has been legal in Germany since 2017. However, higher demand also leads to more jobs. The study assumes that legalization will create 27000 jobs in the cannabis industry. This would increase the amount of social contributions by 526 million euros, i.e. for pension, health and long-term care insurance, and this would also result in payroll taxes of 280 million euros.

Two other figures, still completely absent from the 2018 survey, show the legalization effect even more positive. For the first time, it is possible to quantify savings in the justice system thanks to better data, according to the study.


Tags : Germanysurvey
weedmaster

The author weedmaster

Media broadcaster and communications manager specializing in legal cannabis. Do you know what they say? knowledge is power. Understand the science behind cannabis medicine, while staying up to date with the latest health related research, treatments and products. Stay up to date with the latest news and ideas on legalization, laws, political movements. Discover tips, tricks and how-to guides from the most seasoned growers on the planet, including the latest research and findings from the scientific community on the medical qualities of cannabis.