Show Notes
Jersey's emerging cannabis industry has yet to generate substantial tax revenue, primarily due to significant initial investments and operational costs. Treasury Minister Deputy Elaine Millar reported that fewer than 12 licensed cannabis cultivators declared taxable income for 2022. To maintain taxpayer confidentiality, specific figures were not disclosed. Deputy Millar emphasized that both the government and Revenue Jersey are closely monitoring the sector to ensure appropriate tax treatment of profits and gains. She noted that, given the receipt of only one year of tax returns from this industry, it would be premature to review the tax regime at this stage.
The taxation framework for cannabis businesses in Jersey varies by operation type:
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Cultivation, Processing, and Distribution: Subject to a 20% corporate tax rate.
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Dispensaries (Retail Operations): Fall under Jersey's 0% corporate tax regime.
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General Practitioners Issuing Prescriptions: Taxed individually on their profits.
Despite initial projections to position Jersey at the forefront of the European cannabis market, strategic development has encountered delays. Resource constraints halted the creation of a dedicated industry strategy in September. Since 2019, over £100,000 has been allocated to consultancy services and regulatory support. However, Economic Development Minister Kirsten Morel stated last year that the cannabis industry had attracted up to £60 million in inward investment to Jersey.
The government remains committed to fostering a responsible and well-regulated cannabis industry, recognizing its potential for economic diversification and growth.
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