It appears that interest in cannabis reform among European countries is growing, as members of the Czech Republic cabinet heard a draft plan on launching a regulated cannabis market in the country, alongside increasing drug addiction and treatment spending, according to a ?TK report.
Jind?ich Vobo?il, a national anti-drug coordinator, told ?TK that a regulated cannabis market could be worth billions of crowns in tax-related revenue for the national budget. The plan is part of a larger strategy, addressing Czech drug addiction in the country by 2027. Previous Prime Minister Andrej Babiš laid out the historic move, though his anti-drug minister had not issued a plan to implement it moving forward. Following the election of new Prime Minister Petr Fiala, Vobo?il returned to the anti-drug post in October 2021.
“The action plan will have five clear priorities. The controlled market, taxes, i.e. their improved collection, and a definition of the tax policy. This is something new in our action plans,” Vobo?il told ?TK.
Regarding what the new law could actually look like, Vobo?il said the new measures should establish the level of narcotic substances that legal cannabis is allowed to contain. Cannabis growers would need to be licensed, and the law would also clearly specify who growers could deliver products to. Licenses would also be extended to select shop owners. The cannabis limits for consumers would be limited, and buyers could be required to register with the state, he said.
Fiala’s cabinet indicated that the regulation of addictive substances should correspond to the extent of their harmfulness in a policy statement. This would also be reflected in the excise taxes imposed on substances, as the plan also includes new taxes on tobacco and alcohol. The report notes that the country has already collected about CZK 60 billion in excise taxes on tobacco products (About $2.4 billion USD), and CZK 13 billion (about $519 million USD) in excise taxes on alcohol.
Additionally, the plan would look at gambling taxes, which currently rake in about CZK 5.1 billion to the national budget and CZK 4.9 billion to city budgets annually (about $204 million USD and $196 million USD, respectively). Despite the revenue gains, the draft plan notes that society loses far more yearly, about CZK 150 to 180 billion a year (around $6 to 7.2 billion USD).
The Czech Republic already decriminalized cannabis back in 2013, with medical use legalized in 2013 for the treatment of certain ailments. The medical program has also capped THC and CBD levels, at 19% and 7.5%, respectively. Home cultivation for personal use is allowed, but THC levels cannot exceed 1%.
Czech’s Pirate Party, a member of the Czech Republic’s governing coalition, is one of the major forces behind adult-use cannabis legalization in the country. The party introduced a bill that would have legalized adult-use cannabis back in 2020, and while the initiative failed, the Pirates have already built a platform to continue pushing cannabis reform.
The Pirates only hold four of the 200 seats in the Czech Chamber of Duties, but demands of parliamentary coalition-building elevated the party to its place in the Czech government in 2021. The Pirates have not only advocated for legal cannabis but also the legal medicinal use of certain psychedelics.
Some have also pointed out that the Czech Republic’s progress around cannabis reform is likely influenced by the moves neighboring Germany is making. The country legalized medical cannabis in 2016, and now Germany is set to legalize adult-use cannabis by 2024, which will also make the country the world’s largest recreational cannabis market.
Just this week, a draft version of the German government’s cannabis legalization proposal was leaked. According to the draft, people could grow up to two plants for personal use, there would be a 15% THC cap on cannabis products for adults over 21 and THC would be restricted to 10% for consumers between 18 and 21.
As the Czech Republic is already touting THC caps, albeit higher ones, in these early conversations, the German draft regulations were met with criticism from reform advocates, arguing that the plan is excessively restrictive.
