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Provincial budget includes marijuana revenue for first time

Mar 23, 2018 | 5:36 PM

 

MEDICINE HAT, AB. – For decades the oil and gas sector has been pumping money into Alberta’s economy.

The province is striving to diversify and cannabis revenue is being factored into Alberta’s budget, with 26 million dollars in taxes expected to be collected once marijuana is legalized.

The province said it will not be seen as a revenue generator until a few years after legalization to cover the costs of changing the laws and keeping marijuana out of the hands of children.

By 2021, it’s been projected that cannabis revenue will bring in about 37 million dollars for the Alberta government. 

Glen Allan, an economics professor at Medicine Hat college worries these profits could come at a cost.

“I know it’s awfully tempting to think of it as a big pot of money that you’ll be able to spend but hopefully some long term planning,” he said. “Does this increase healthcare costs? Does this affect policing costs?”

Revenues are being based on how much business is taken away from the black market. The province estimates it it may only be able to obtain by 25 percent of it.

Justice Minister Kathleen Ganley said they are taking their best guess.

“At this point, until we start to see how it moves and validate what some of those assumptions are it’s very difficult to say with certainty,” she said.

Staff Sgt. Cory Both said legalizing marijuana won’t stop people from buying it on the black market.

“It might limit it, but I don’t see it getting rid of it all together,” he said.

The province and the federal government have agreed to share the tax revenue of one dollar per gram or 10 percent of the producer price for cannabis, whichever is greater. The plan is to ensure prices for cannabis are consistent across the country.