Alcohol farm

US states make 20% more money taxing dagga than alcohol

Dagga begins pouring massive amounts of “sin taxes” into the coffers of some US states.

Combined, the 11 U.S. states where recreational use of dagga is legal raised 20% more taxes than on alcohol.

In 2021, they raised nearly 47 billion rand ($3 billion) from dagga, surpassing revenue from other “sin taxes”.


RELATED: South Africa will build a fully-fledged industrial dagga industry – Ramaphosa


In Colorado, where dagga has been legal since 2011, authorities have collected seven times more taxes with this product than with alcohol.

U.S. states, in total, still generate more tobacco tax revenue, except in Colorado and Washington, where dagga earns 44% and 17% more, respectively.

South Africa will build a fully fledged industrial dagga industry, President Cyril Ramaphosa announced in February.

The dagga sector can create more than 130,000 new jobs, he said.

“So we are streamlining the regulatory processes so that the cannabis sector can thrive like in other countries like Lesotho.

“Our people in the Eastern Cape, KwaZulu-Natal and beyond are ready to cultivate this age-old commodity and bring it to market in new and innovative forms.”


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