Legal Marijuana

Legal Marijuana
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Legal Marijuana
Canada will be the first among the G7 countries to legalize recreational marijuana despite the controversies surrounding its use. Efforts to authorize the use of cannabis date back to spring 2017 when the federal government announced its intentions to regulate marijuana’s cultivation, supply, sale, and consumption. Although the government anticipates a few complications such as illegal entry of people into the country, legal marijuana will be a significant source of income in Canada. Legalization of the drug will also introduce a new sector to the formal economy besides stripping illegal sales. The government hopes to open a marijuana market by the end of summer 2018 (Quinn, 2018). Since provincial and local governments are in need of a new source of revenue, legal marijuana presents the best opportunity to improve municipal services and infrastructure.
Provincial and local governments in Canada are under economic strain due to intensifying responsibilities. Also, issues related to revenue deficiencies to support infrastructural development, climate change, and an aging population have contributed considerably to the need for more reliable sources of revenue. According to Quinn (2018), provincial governments in Canada today are facing significant challenges linked to constrained revenue-generating capabilities. It is vital to note that property tax, which is the primary revenue source for these governments has numerous constraints.

Besides remaining impassive to the unfolding strains on municipal obligations, property tax rates are prone to political interference. Precisely, politicians often resist any duty increases that surpass the standard rate of inflation on these taxes to avoid public criticism. Contrary to other levels of administration, the federal government does not allow municipalities and provincial administration to run arrears as a way of covering operational costs.
Furthermore, the shares and grants that the provinces have been receiving from the federal government have declined, demanding the need for additional revenue sources. Government allocations related to transfers and gifts often serve specific purposes. In most cases, they are usually available for capital projects. Provincial governments lack financial stability since the capital transferred to them in the form of operating expenses serves specific purposes. These governments need a new source of revenue and marijuana legalization presents an excellent opportunity towards longstanding financial sustainability. Quinn (2018) asserts that legalization will generate a market worth of approximately C$7 billion as well as fuel investor anticipation of some marijuana companies. Specifically, the market valuation for Aurora Cannabis Inc. and Canopy Growth Corp. is expected to increase to about C$1 billion (Quinn, 2018). Supporters of marijuana legalization have pressured the Senate to approve the bill to terminate the botched system of prohibition.
The Senate voted tremendously in favor of the bill and overruled a contentious one demanding for further restrictions on marijuana growers who cultivate the plants at home. The senators defended the rejection of the latter statute by arguing that its implementation will create a political crisis to delay the regulation of homegrown marijuana (Quinn, 2018). Conservative representatives raised concerns regarding illegal border crossings to postpone the implementation of the bill. However, the Canadian prime minister refuted the misgivings with arguments that legalization will not only deny criminal gangs profits but also reduce the consumption of marijuana among the youth (Quinn, 2018). In addition to providing the government an extra revenue stream, regulation of cannabis production will support safe use. Stringent restrictions on advertising and packaging will curb its appeal among the youth. Importantly, control will allow the national government to restrict excessive use of cannabis and its consumption among people under the age of eighteen.
Reference
Quinn, G. (2018). Marijuana will become legal in Canada on Oct. 17, Trudeau says. Bloomberg. Retrieved from https://www.bloomberg.com/news/articles/2018-06-19/legal-pot-gets-green-light-after-canadian-senators-sign-off