Canada Has Generated Billions In Cannabis Taxes Since 2018
Canada Has Generated Billions In Cannabis Taxes Since 2018
Canada has been home to a thriving cannabis community for many years. Having grown up in the Pacific Northwest in the United States, I know firsthand how well-known British Columbia’s legendary cannabis scene was decades ago, and still remains so.
Lawmakers in Canada approved the world’s second-ever national recreational cannabis legalization measure in 2018. The only other country to adopt a national adult-use cannabis legalization measure before Canada was Uruguay.
Legalization in Canada involves the pursuit of various public policy goals, including combating the unregulated market, boosting public health outcomes by transitioning consumers toward regulated products, job creation, and boosting local economies. Another major goal was generating taxes and fees for public coffers, and according to recent data, the pursuit of that particular goal appears to be a smashing success.
“A new report shared in the House of Commons shows that the federal and provincial governments in Canada have brought in more than $5.4 billion in cannabis tax revenue since October 2018.” reported StratCann in its local coverage.
“The federal government has collected just $1.2 billion of that revenue, while the majority—$4.2 billion—has gone to the provinces and territories. The figures are updated through August 31, 2025.” the outlet also reported.
In addition to taxes and fees generated by Canada’s regulated cannabis industry, there is also the direct financial benefit to Canada’s government in the form of no longer wasting public resources by enforcing failed cannabis prohibition.
Money that used to be spent investigating, arresting, prosecuting, and/or incarcerating people caught with cannabis is now spent on more worthwhile efforts that benefit Canadian society. The nation’s criminal justice system can now focus on fighting real crime, and that benefits all of the citizens of Canada, not just cannabis consumers.
With all of the benefits that Canada is experiencing thanks to implementing a sensible, modernized approach to cannabis policy, it begs the question – why isn’t every country doing it?
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