Tuesday, October 29, 2019
Marijuana legalization was supposed to give Canada's cannabis fanciers access to above board and reliable drug sources while providing tax revenue for the government. But one year in, large numbers of Canadian cannabis users continue to rely on underground dealers. Like with U.S. states that have grudgingly legalized marijuana for recreational use, the black market goes on thriving and generating profits because politicians and regulators have hobbled legal businesses and inconvenienced consumers through high taxes and excessive rules.
"I did $1.4 million in sales, which is the highest sales of any retailer in Newfoundland, as far as I know. And I'm just barely scraping by," one marijuana retailer told the CBC. By provincial law, he's limited to an 8 percent commission on his sales. Out of that, he must pay a dollar per gram excise tax, and then 2.5 percent to credit card companies. And he's limited in his offerings, since cannabis edibles aren't yet legal.
By contrast, the former (and possibly future, he says) black market dealer points out that "you can buy a pound of weed for up to $1,600 and sell it for $3,000 on the illegal market right now, and dealers deliver it to your door within a couple hours."
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