Should High Tobacco Taxes Set the Standard for Recreational Cannabis Taxes?

From: Int J Health Policy Manag. 2017 Mar; 6(3): 173–176

The Devil Is in the Details! On Regulating Cannabis Use in Canada Based on Public Health Criteria

Comment on “Legalizing and Regulating Marijuana in Canada: Review of Potential Economic, Social, and Health Impacts”

Jürgen Rehm, 1 , 2 , 3 , 4 , 5 , 6 , 7 ,* Jean-François Crépault, 8 and Benedikt Fischer 1 , 3 , 4 , 9

Abstract

This commentary to the editorial of Hajizadeh argues that the economic, social and health consequences of legalizing cannabis in Canada will depend in large part on the exact stipulations (mainly from the federal government) and on the implementation, regulation and practice of the legalization act (on provincial and municipal levels). A strict regulatory framework is necessary to minimize the health burden attributable to cannabis use. This includes prominently control of production and sale of the legal cannabis including control of price and content with ban of marketing and advertisement. Regulation of medical marijuana should be part of such a framework as well.

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Education and guidelines may play a role in reducing heavy and frequent use (for guidelines see22). One way to finance such efforts would be via a dedicated tax, which would be used for prevention, research, education, and treatment. Examples of such taxes exist in the alcohol and tobacco field,28 and justification could be derived from classical economic theory.29,30 Another way to impact on frequency of use, especially in adolescents (above legal age) and young adults, is via price (and indirectly via taxation). Alcohol and tobacco policies have shown that price is a powerful tool to influence level of use,31,32 and specific taxation schemes may even impact on onset of substance use.33,34 Finally, again drawing from alcohol and tobacco, a ban on marketing and advertisement contributes to establish cannabis as no ordinary commodity where certain caution in use patterns are required.15

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