Canadian smoke shops and cannabis users are still buzzing after the legalization of cannabis for recreational use as of October 17th, but what will this change mean for the Canadian government and what can we expect to see in 2019?
Let’s have a look at what kind of impact legal cannabis will have on Canada’s economy.
The Canadian government and community are expecting a big boost in the economy in the upcoming year.
But what are all the changes and benefits that we can expect to see in the Canadian economy?
The impact that the cannabis industry will have on the government in 2019 will be similar to the one it’s been experiencing over the past year.
The Canadian Imperial Bank of Commerce estimates that the cannabis market in Canada will be worth somewhere between $5.5 and $6.5 billion by 2020, which might even rival the sales of wine.
By 2020 the cannabis industry is expected to make around $1 billion in EBITDA, but it’s the provinces that stand to make the most profit.
According to CIBC, analysts forecast the provinces are expected to generate over $3 billion of income a year, in the form of taxation revenues or earned profits, capturing a stunning amount of ~$700 million from excise taxes alone.
Although we can already visualize the massive impact that the legalization of cannabis will have on the economy and the amount of cash it will inject in it, it is the provinces that are the big winners of legalization.
It’s the provinces that will hold all the cards when it comes to distribution and keep a very tight control of the product. These measures are set in order to safeguard the security and quality of the products, but they also provide a big flow of profits to each province.
There are many things that have contributed to the growth of the cannabis industry and many that continue to do so. Among those things is the increasing number of smoke shops and dispensaries that enter the market, the amount and variety of products available and the increase in professionalism across the industry. The popularization of innovative custom made cannabis accessories, quality packaging and customized dispensary supplies have also contributed to the growth of the cannabis industry.
The cannabis industry is growing steadily and we are all interested to see what the future of the Canadian Cannabis Culture holds.