Crimbrary

Sharing the Costs of Cannabis in Canada
Cannabis use creates direct costs for governments, especially in the areas of health care and criminal justice. New analysis from the Mowat Centre shows that following legalization, there is a real risk that overall costs could increase. That risk will be borne disproportionately by provincial, territorial and municipal governments. The way cannabis-related tax revenues are shared between governments should reflect this reality.

Prior to legalization, provincial, territorial and municipal governments are estimated to have shouldered just over 70 per cent of the over $800 million in annual costs related to cannabis. Legalization will doubtless lead to lower costs in certain areas. Changes to possession laws alone should lead to a considerably reduced burden on the justice sector. 

At the same time, there is a real risk that overall costs to government will increase post-legalization, primarily due to the impact of cannabis-impaired driving and to health-related costs. The majority of this risk is shouldered by provinces, territories and municipalities. 

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