The Cannabis Industry Could Contribute Up to Rp 14 Trillion in Taxes Annually

Thailand officially removed cannabis from its list of prohibited substances and permitted its citizens to cultivate it at home starting Thursday, June 9, 2022. This makes Thailand the first Southeast Asian country to legalize cannabis.

"This is an opportunity for the people and the country to generate income from cannabis," wrote Thailand's Minister of Public Health and Deputy Prime Minister Anutin Charnvirakul on Facebook, as quoted by ABC.net on Thursday, June 9, 2022.

According to the Sativa Nusantara Foundation's report, *Mulai Melangkah dengan Meneliti Ganja* (2021), the value of the medical cannabis industry in Thailand is projected to reach US$660 million, or approximately Rp9.61 trillion, by 2024.

In the United States, the cannabis industry can contribute trillions of rupiah in tax revenue annually.

Here are some examples of US states that have legalized cannabis, along with their cannabis tax revenue for 2020/2021 (assuming an exchange rate of Rp14,564.45 per US$):

* California: US$1 billion, or approximately Rp14.56 trillion
* Washington: US$559 million, or approximately Rp8.14 trillion
* Colorado: US$437 million, or approximately Rp6.36 trillion
* Illinois: US$317 million, or approximately Rp4.61 trillion
* Arizona: US$196 million, or approximately Rp2.85 trillion
* Oregon: US$172 million, or approximately Rp2.5 trillion
* Nevada: US$144 million, or approximately Rp2.09 trillion
* Massachusetts: US$64 million, or approximately Rp932 billion
* Alaska: US$24 million, or approximately Rp349 billion

This cannabis tax revenue was compiled by the Urban Institute from the financial reports of each state.

According to the Urban Institute, there are generally three types of cannabis taxes implemented in the US: sales tax, excise tax, and a tax based on the potency of the cannabis, similar to alcohol taxes. However, each state can implement different tax systems and rates, resulting in significant variations in revenue.