Treasury cannot identify any VAT, customs duty or income tax generated from medicinal cannabis since it became available on the island.
Responding to a question from Jason Moorhouse in Keys, Treasury Minister Chris Thomas said: “Treasury is unable to identify any VAT income directly attributed to personal cannabis, as its supply is zero rated.
“I am advised that the Customs Configuration Division has not collected any customs duty on medicinal cannabis since it became available.”
Cost
Mr Moorhouse raised concerns about the cost of operating in the sector, noting a manufacturing licence from the Gambling Supervision Commission costs £23,625 in the first year, with subsequent years at £15,050.
In the UK, he said a dual licence costs £4,700 and £6,019 respectively.
“Have we actually priced ourselves out of the medical cannabis manufacturing and the source associated future income streams to operate here?” Mr Moorhouse asked.
Mr Thomas told members: “Whether or not that fee is material and significant in this decision making to me seems unlikely, because that amount of money seems trivial compared to the build costs and other factors like electricity costs.”
Dr Alex Allinson noted the availability of medicinal cannabis for patients “is not about income generation, it’s about making sure they have access to safe, legal medicinal cannabis, rather than having to go on the black market”.