California cannabis industry is on the cusp of ‘collapsing’, business leaders warn Governor

Governor Gavin Newsom of California has been alerted of the fact that the state’s legal cannabis industry is on the cusp of financial collapse. The warning was directed towards the governor by a number of the state’s acclaimed cannabis companies. Specifically, cannabis company owners told the governor that “The Golden State” is inching ever closer to the edge of a crisis. In an attempt to stabilize the marketplace, Gov. Newsom is being urged to cut tax rates and increase the number of retail outlets across California. Signed by over two dozen executives, the written warning has been brewing for quite some time. Industry officials and cannabis legalization advocates have been attempting to establish a solution following years of negative feedback about the harshly-taxed and regulated industry which, they say, struggles to stay afloat alongside the illegal economy.  In their letter, the cannabis business owners say that “our industry is collapsing” four years after broad legal sales began. This is a good point, because consumer prices of black market-sold weed are significantly less, whereas sales are normally double or triple the legal business. Industry leaders urge Gov. Newsom to lift cannabis taxes in California After highlighting California’s legal cannabis market’s risks, industry leaders requested the instant revocation of a growing tax required by licensed growers. In addition to this, business owners suggested that retail shops be expanded statewide and that industry participants be granted a three-year break from the cannabis excise tax. “The opportunity to create a robust legal market has been squandered as a result of excessive taxation. Seventy-five percent of cannabis in California is consumed in the illicit market and is untested and unsafe. We need you to understand that we have been pushed to a breaking point,” the industry leaders continued in their letter to the governor. The…

Excerpt only …
Source : California cannabis industry is on the cusp of ‘collapsing’, business leaders warn Governor

reposted by Cannabis News World

This site uses Akismet to reduce spam. Learn how your comment data is processed.