New Zealand Drug Trade Worth NZD 245.4 Mln in Taxes
April 11, 2016 New Zealand Taxation
The drug trade in New Zealand could net NZD 245.4 million in taxes per year, if it was taxed like any other business.
Last week the Ministry of Health issued its annual Drug Harm Index, claiming that the nation’s illicit drug trade reduces the tax base by approximately NZD 245.4 million.
It was estimated by the Ministry of Health that the untaxed illicit drug trafficking in New Zealand could have led to a collection of NZD 78.3 million of GST, and an additional NZD 167.1 million in corporate income tax.
The sale of drugs to dependant users would have netted an estimated NZD 140 million of tax, while causal users would have led to an additional NZD 105.4 million of tax obligations.
Cannabis and other cannabinoids would have resulted in taxes of NZD 214.1 million, while amphetamine stimulants would have led to NZD 29.8 million, with hallucinogenic and opioids leading to NZD 0.7 million and NZD 0.78 million respectively.
Photo by: Torben Hansen