Latin America

Judi Lynn

(160,545 posts) Tue May 20, 2014, 03:29 AM May 2014

Uruguay to sell marijuana tax-free to undercut drug traffickers

Uruguay to sell marijuana tax-free to undercut drug traffickers
By Malena Castaldi
MONTEVIDEO Mon May 19, 2014 10:03am EDT

(Reuters) - Uruguay will exempt marijuana production and sales from taxes in a bid to ensure prices remain low enough to undercut competition from black market pot smuggled in from Paraguay, according to consultants advising the government on a legalization plan.

Congress approved a law allowing the cultivation and sale of marijuana in December, making Uruguay the first country to do so, with the aim of wresting the business from criminals.

"The principal objective is not tax collection. Everything has to be geared toward undercutting the black market," said Felix Abadi, a contractor who is developing Uruguay's marijuana tax structure. "So we have to make sure the price is low."

Uruguay will auction up to six licenses to produce cannabis legally in the next weeks. The government is also considering growing marijuana on a plot of land controlled by the military to avoid illegal trafficking of the crop.

More:
http://www.reuters.com/article/2014/05/19/us-uruguay-marijuana-idUSKBN0DZ17Z20140519

3 replies

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Uruguay to sell marijuana tax-free to undercut drug traffickers (Original Post) Judi Lynn May 2014 OP

wow, that would be a bridge too far, Joe Shlabotnik May 2014 #1

Yep, that's how to do it, all right Warpy May 2014 #2

I'm impressed with their enlightened approach trusty elf May 2014 #3

Joe Shlabotnik

(5,604 posts)

1. wow, that would be a bridge too far,

Reply to Judi Lynn (Original post)

Tue May 20, 2014, 03:42 AM

May 2014

for even our most progressive leaning governments toying with the idea of legalization. If there is no 'market friendly solution', that lines the pockets of their friends, or fixes their deficits through regressive taxes, then whole thing would never fly here.

Warpy

(111,276 posts)

2. Yep, that's how to do it, all right

Reply to Judi Lynn (Original post)

Tue May 20, 2014, 03:55 AM

May 2014

Sell safe, clean drugs in reliable dosages and undercut the gangs. The gangs will move elsewhere and if other countries follow suit, they will just fall apart.

Pity the country didn't learn that lesson from Prohibition.

trusty elf

(7,394 posts)

3. I'm impressed with their enlightened approach

Reply to Judi Lynn (Original post)

Tue May 20, 2014, 04:28 AM

May 2014

and will be following developments there with keen interest.

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