Cannabis legalization brings taxes and saves costs! Statistics

No sooner has it been legalized than the Medical Cannabis Act (MedCanG) is to be severely restricted again. Dealers are happy and the state is losing billions in taxes. In 2021 alone, cannabis generated 1.8 billion euros in tax revenue and saved the police over 1.05 billion. These statistics from DICE Consult (Prof. Dr. Justus Haucap, Leon Knoke) from Düsseldorf are more up-to-date than ever.

Cannabis legalization: This is how much tax it saves

The legalization of cannabis in Germany could generate considerable tax revenue and save various costs. The highest revenues come from the cannabis tax, while the greatest savings would be in police costs. Overall, the graph shows a possible potential for relieving the state budget.

  • Cannabis tax: revenue of 1,800 million euros
  • Savings in police costs: 1,051.19 million euros
  • Value added tax: revenue of 650 million euros
  • Social security income: 525.95 million euros

Statistik: Steueraufkommen und eingesparte Kosten durch eine Legalisierung von Cannabis in Deutschland im Jahr 2021 (in Millionen Euro) | Statista

Source: DICE Consult / Statista

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Overview of tax revenue and savings

The legalization of cannabis could generate additional tax revenue and save significant costs in the area of law enforcement and justice. Here are the key figures:

  • 1,800 million euros from the cannabis tax – main source of revenue.
  • 1,051.19 million euros saved on police costs – less law enforcement required.
  • 650 million euros from sales tax – through legal cannabis sales.
  • 526 million more social security – through new jobs.
  • 279.3 million euros from payroll tax – additional employment in the sector.
  • 272.3 million euros saved in court costs – fewer proceedings.
  • 59 million euros in corporation tax – corporate profits from the cannabis market.
  • 41 million euros less prison costs – fewer prison sentences.
  • 26 million euros from trade tax – through new companies.

Study & conclusion

Cannabis legalization could bring Germany both higher tax revenues and significant savings. These financial benefits would ease the burden on public budgets and create space for other investments.

To summarize:

  • Main source: Cannabis tax
  • Major savings for police and courts
  • Sales and wage tax through new jobs
  • More social security income
  • Trade tax and corporation tax for new companies

Cannabis studies: Current

Up-to-date knowledge! In Germany, around 6.1% of the population between the ages of 18 and 64 use cannabis. What’s new? Read the latest news here: