THE LEGALIZATION OF MARIJUANA AND ITS TAX IMPACTS IN BRAZIL

Abstract

Objective: This article aims to analyze the tax impacts resulting from the possible legalization of marijuana in Brazil, in light of international experiences and relevant constitutional principles. Justification: The research is justified by the economic and social relevance of the topic, considering the potential increase in tax revenue, the reduction of informality, and the reorientation of public policies in the areas of security and health. Methodology: The methodology adopted was bibliographic and comparative research, based on studies, government reports, and economic data from countries that have already implemented legalization policies, such as Uruguay, Canada, and the United States. Different models of regulation and taxation were analyzed to identify best practices and adaptations to the Brazilian context. Main results: The main findings indicate that the legalization of marijuana could lead to a significant increase in tax revenue, estimated between five and seven billion reais per year, in addition to reducing public spending related to police enforcement and the prison system. However, the data also reveal significant challenges, such as the risk of tax evasion, the persistence of the illegal market, and the need to balance the tax burden in order to maintain competitive prices and prevent the exclusion of consumers from the formal market. Conclusion: The study concludes that adopting a mixed legalization model with selective taxation, strict state regulation, and earmarked allocation of tax revenues to health and education policies represents the most appropriate alternative for the Brazilian context. Such a model would allow for the reconciliation of fiscal, social, and public health objectives, promoting a balanced approach between revenue generation and social responsibility.