Taxation of cannabis

Taxation of cannabis involves government-imposed taxes on the sale and distribution of cannabis products. These taxes can be applied at various stages, such as during cultivation, distribution, or retail sales. The primary goal is to generate revenue for public services, regulate the legal cannabis market, and discourage illegal sales. Tax rates vary by jurisdiction and can include excise taxes, sales taxes, or special licensing fees. Proper taxation helps ensure quality control, safety standards, and funds for public health initiatives, while also maintaining a balanced approach between regulation and industry growth.