$5 Billion in Taxes if Paraguay Legalizes Cannabis
According to Marcelo Demp, president of the Paraguayan Industrial Hemp Chamber (CCIP) and director of one of the country's largest companies, Paraguay could potentially earn $5 billion from the sale of recreational cannabis. Paraguay is one of the largest cannabis producers in the world and leads the way in Latin America.
For the past decade, various bills have been introduced in Congress to regulate cannabis in various ways. Currently, negotiations between the CCIP and the government have reached a crucial point. Paraguay already has a medical cannabis law in place, although it is poorly implemented, as well as a law for industrial cannabis.
However, the recreational marijuana law is still under discussion at the presidential level and has not yet been approved. Demp stated that based on calculations made in collaboration with the Ministry of Industry and Commerce, the country could potentially collect around $5 billion in its first year of recreational cannabis sales, assuming an 18% tax rate as outlined in the proposed bill, which is currently with President Santiago Peña.
What's the Governments thoughts on legalising cannabis?
The government has shown hesitations and unclear stances regarding the legalization of marijuana in Paraguay. The responsibility for regulating recreational cannabis would fall to the Ministry of Industry, headed by Javier Giménez. He has previously stated, "Legalizing marijuana makes sense," noting its global demand.
He further commented that "economically it makes sense" to legalize cannabis because the current market is controlled by organized crime. One of the primary objectives of this initiative is to support farmers who currently face exorbitant bribes from various police and military agencies. Demp emphasized that "growers will stop cultivating illegal crops.
They will be able to grow cannabis near their homes, in farms that can be inspected, and they will earn significantly more money than they do today." Giménez added, "If it's legalized and managed properly, cannabis could become one of Paraguay's top five export products." Now, the only thing left is to await a favorable decision from the president. Fingers crossed.
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Liz Filmer
