South Africa: Chairman Of National Tax Committee Says Govt Fails On All Fronts When It Comes To Cannabis

CANNANNEW REPORT

Business Tech South Africa reports South Africa could be sitting on a tax revenue gold mine in the form of legal cannabis, says Ettiene Retief, chairman of the National Tax Committee at the South African Institute of Professional Accountants (SAIPA). Unfortunately, the government has so far failed to exploit a massive, untapped market for recreational cannabis consumption, both locally and globally, Retief said. Retief cites the success of Colorado in the USA. In 2012, its citizens voted to legalise recreational marijuana use for adults. Since then, the state has seen over $10 billion in total sales and, in the last six years, tax on the product has amounted to over $1.6 billion at the state level alone. Revenue resulted from a 2.9% sales tax on medical and recreational sales and a 15% excise tax when the cannabis leaves the grower. This excludes tax on industrial hemp, which the state legalised in 2010. Witnessing the sustainability of this new tax revenue stream in both Colorado and Washington, four more states voted last year to legalise cannabis – New Jersey, South Dakota, Montana and Arizona. “Although I’m not an advocate of it, I cannot ignore the incredible growth this emerging industry is experiencing and the phenomenal potential it presents for taxation. We are seeing a similar trend in other countries as governments realise that, with the right controls, recreational and medical cannabis can be exceptionally lucrative,” said Retief. Sin tax  Apart from duties and VAT on the production and distribution of legalised cannabis, the so-called “sin tax” on cigarettes and alcohol could also apply to this similar product. And that’s just the beginning, Retief said. “Let’s not forget the vast supply chain that would emerge, the corporate tax on those activities, including imports and exports, taxable income from the jobs created, and…

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Source : South Africa: Chairman Of National Tax Committee Says Govt Fails On All Fronts When It Comes To Cannabis

reposted by Cannabis News World

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