Drudge Retort: The Other Side of the News
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.

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"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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80 years of prohibition didn't slow down consumption... too many rules and taxes and the black market will happily fill the void.

#1 | Posted by 503jc69 at 2019-10-29 02:17 PM | Reply

Big Pharma behind this as well.

#2 | Posted by aborted_monson at 2019-10-29 04:29 PM | Reply

No way he is reselling weed for 3k a pound.125oz cdn in my part of Canada for primo.

#3 | Posted by Scotty at 2019-10-29 07:36 PM | Reply

You have to break it down to quarters and eights. Wait, do they do those in a metric system? or is it straight to grams?

#4 | Posted by sitzkrieg at 2019-10-30 07:55 AM | Reply

It seems to me like these laws aren't intended to stop the black market, only to allow people who can afford to pay a premium to avoid prosecution. And conversely to continue to imprison the lower classes. If they really wanted to eliminate the black market they'd tax it in such a way as to undercut the black market price which already has a pseudo tax involved due to the dangerous nature of dealing and transporting. So tax it, definitely, but don't tax TF out of it.

#5 | Posted by Hagbard_Celine at 2019-10-30 08:09 AM | Reply

It seems to me like these laws aren't intended to stop the black market, only to allow people who can afford to pay a premium to avoid prosecution. And conversely to continue to imprison the lower classes. If they really wanted to eliminate the black market they'd tax it in such a way as to undercut the black market price which already has a pseudo tax involved due to the dangerous nature of dealing and transporting. So tax it, definitely, but don't tax TF out of it.

#5 | Posted by Hagbard_Celine

ROFL No one is going to jail.The black/grey market dispensaries have gone online and deliver through the mail.Due to the lack of violence it is not a police priority.Medical weed was legal federally for 18 years with 1 or 2 crappy suppliers so folks grew their own.now any adult cdn can grow 4 plants recreational.Then on the medical side it is a hodgepodge of court decisions going back 18 years.6 years ago the conservative govt lost a case over MMAR which left roughly 40k of us permanently grandfathered rights under the previous law.Myself I can have 6 lbs in my home and 35 plants growing legally.

The only real risk of criminal punishment is trafficking to minors.You can get fines though for public recreational use but if you have any of the 3 types of medical licences it wont get past the JP at the courthouse.

Using quality nutrients paying for electricity etc My cost of production is less than 50 cents a gram.Using cheap chemical nutrients like a lot of the LP's do would cut that to 25 cents a gram but doesn't produce the quality of product that some of the more expensive nutrients allow.So the LP's produce a cheaper inferior product compared to most Medical licensees yet the LP's mindset that they were going to get 10 bucks a gram.They need to lower their price to 3 dollars a gram before the grey market would start to drop out IMHO.

BTW the official "reason" for legalization in Canada was to reduce teen use and harm.

#6 | Posted by Scotty at 2019-10-30 04:48 PM | Reply

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