New Study Backs Full Cannabis Legalisation in Czech Republic, Projecting CZK 5.5bn (€218m) in Social Benefits Annually Sept 16, 2024
As the Czech Republic’s efforts to launch a fully regulated adult-use cannabis market continue to hang in the balance, numerous efforts to convince government ministers and the general public that it would be beneficial for the country have now been launched.
Last week, the University of Economics – Prague, and its Faculty of Business Administration published an in-depth study into the potential costs and benefits of the different models of cannabis reform currently being proposed in the country.
It concluded that a ‘comprehensive model’, which includes self-cultivation, cannabis clubs and a full commercial market, could bring ‘total net social benefits of CZK 5.5bn (€218m) per year’
Meanwhile, the Rational Regulation Association (RARE) launched a new media campaign, which aims to ‘open a debate between experts and the lay public’ about cannabis regulation, while urging politicians to deal with the issue.
The study The analysis published by the University on September 12 explores each of the current models proposed by the former National Drug Coordinator, Jindich Voboil, who is now an independent advisor to the government,
In late May, Business of Cannabis reported that Mr Voboil, who was was officially commissioned by the Czech government to prepare a law for the regulation of cannabis in November last year, had completed two separate versions of the bill.
One bill proposed a comprehensive legalisation model including a commercial market, the other a paired back model akin to Germany’s current framework, whereby home cultivation and cannabis social clubs would be legalised but citizens would remain unable to purchase cannabis openly in dispensaries.
As such, the study explored four separate variants of legalisation, examining the social and economic implications of each, including the maintaining the current status quo.
The research suggested that if only self-cultivation was legalised, the country would see a net social benefit of CZK 1.2 bn per year and CZK 16.5bn over the first 11 years.
Assuming that a portion of the cannabis currently supplied by the black market will shift into the legal sphere, this strategy would see CZK 0.1bn annually and CZK 1.5bn over 11 years from taxes and fees for public budgets, though these would be offset by costs of registration and enforcement.
In the second scenario, where both self-cultivation and cannabis clubs were legalised, the study projects higher returns: CZK 1.5bn per year and CZK 20.8bn over 11 years in social benefits.
Public budgets would benefit by CZK 0.2bn annually and CZK 1.8bn over the same period, and the inclusion of cannabis clubs would act as an important step towards more organised cannabis consumption while maintaining low implementation costs.
A comprehensive model, including a regulated market as well as self-cultivation and clubs, promised the highest returns by a significant margin, with the net social benefit forecast to be CZK 5.5bn per year and CZK 77.2bn over 11 years.
It would also bring an estimated CZK 2.6bn annually and CZK 41.2bn over the first 11 years through taxation and fees, minus collection and administrative costs.
The study highlights that legalisation in any form would lead to improvements in the quality of cannabis production and distribution, ultimately reducing the power of the illicit market and improving consumer well-being.
“The conclusions are very simple. All evaluated options appear to be socially and financially more beneficial for public budgets than maintaining the status quo,” said one of the authors, Patrik Sieber
However, it noted that consumers’ willingness to transition away from the black market would depend on the pricing and regulatory burden.
Lucia Kiov, Director of the Drug Policy Department of the Office of the Government of the Czech Republic, added: “The government currently agrees on allowing self-cultivation of cannabis for personal use and also on the need to increase the availability of medical cannabis. Although the introduction of a comprehensive variant of a regulated cannabis market is the most economically advantageous, I would also like to point out that the study confirms that any variant of regulation of the cannabis market is more advantageous than the current situation”
Media campaign Days before the study was published, RARE officially launched its nationwide campaign in support of the proposals for a fully regulated commercial market.
The initiative was met with widespread coverage in the local media, and has seen a number of leading voices on the subject voice their support for both the legislation and the campaign publicly.
Dominik Stroukal, a member of the Government’s National Economic Council, and Matj Hollan, spokesperson for the civil initiative Family Against Prohibition, support the regulation, citing the excessive costs of criminalizing cannabis and the need for more balanced sentencing.
The group will be publishing a string of short videos aimed at educating the public on the policy propositions and their potential impacts on society.
In a video published on September 10, highlighting the harsh consequences of cannabis prohibition in the Czech Republic, drawing attention to individuals who have received excessively high prison sentences for cultivating cannabis—penalties that sometimes exceed those given for serious crimes like murder or rape.
The video tells the story of Luk Ch., sentenced to 8 years in a maximum-security prison for growing nine cannabis plants. Although there was no evidence he intended to distribute the cannabis, the court assumed he planned to sell it, leading to the harsh sentence. His case illustrates a broader issue in which law enforcement and courts often presume guilt in cannabis cases, imposing severe penalties based on assumed intent rather than proven actions.
According to estimates, around 2,000 cannabis-related crimes are investigated annually in the Czech Republic, with up to 45% of prisoners incarcerated for drug offenses linked to cannabis. The association aims to bring these issues into public discourse and push for change that will prevent further unnecessary criminalization of cannabis users.
The campaign, dubbed ‘It’s OK’, has also launched a crowdfunding initiative in order to raise funding for further media promotion of the complex regulatory proposals, further support victims of cannabis prohibition, and continue to carry out legal analysis of the legal changes currently in the pipeline.
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