PBO Predicts Lower Than Expected Revenue from Marijuana Legalization

A new report from the Parliamentary Budget Officer (PBO) predicts that government proceeds from legalizing marijuana will be lower than expected, forecasting government revenue in the millions not billions of dollars.

marijuana

The report argues that the government’s aim of decreasing marijuana use amongst young Canadians while depriving organized crime of pot revenue will require a delicate balancing act. If the government places the price of cannabis too high, the black market will continue to flourish, while if the price is too low, the government could be charged with encouraging its use.

Read the full report here.

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