Tito: ‘E Cape alone could generate R4 billion in tax if cannabis is legalized’

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South Africa’s Finance Minister Tito Mboweni says the Eastern Cape alone could generate R4 billion a year for the fiscus if cannabis was fully legalized.

Mboweni told Cannabiz Africa publisher Brett Hilton-Barber at a private function in Tzaneen, Limpopo on 23 May 2021 that he supported full legalization of cannabis to boost South Africa’s economy, create jobs and support small-scale farmers. (See new story here).

 

E Cape to be the centre of SA cannabis production

The Finance Minister’s comments follow the call by Eastern Cape Premier, Oscar Mabuyane, that his province wants to be the centre of cannabis production in South Africa https://www.cannabiz-africa.com/eastern-cape-hemp/  .

Mboweni: Eastern Cape could be SA’s main cannabis tax revenue driver

 

There is increasing momentum within the South African government towards legalization with Agriculture Minister Thoko Didiza, saying cannabis was a key part of the country’s agro-processing strategy and that hemp licenses will be issued by October 2021 

 

Illegal SA cannabis market generates R28 billion beyond the tax net

Treasury is aware that the illegal South African cannabis market generates approximately R28 billion a year, most of which profits international criminal networks. Mboweni has made it no secret that he favours complete legalization from an economic development and a personal freedoms perspective. 

 

It’s expected that the the Department of Agriculture, Land Reform and Rural Development (DALRDD) will present the National Cannabis Master Plan (NCMP) to Nedlac’s Trade and Industry forum on 27 March 2021. However, as of 26 May 2021 Nedlac had not confirmed that the NCMP was on the agenda

 

Nedlac meeting takes cannabis to the big economic stakeholders

The Nedlac meeting is important because this will be the first time that senior government officials, big business representatives and the major trade unions will be presented with an “official” cannabis policy. 

 

Tito Mboweni Exclusive

Mboweni: supports cannabis legalization (and taxation) ASAP

Mboweni told Cannabiz Africa that he was heartened by the fact the NCMP was being presented to Nedlac as this would speed up the path towards legalization.

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