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Australia is Punting Away $250 Million a Year in Tax Revenue by Not Legalizing Cannabis Says New Study

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Australia could see more than $250 million a year in new tax revenue by legalizing marijuana.

Australia Is Missing Out On At Least $250 Million Each Year That Cannabis Isn’t Legalized, Says New Report

Canada and Uruguay have long legalized marijuana.

Is Australia next?

Unfortunately, Australia seems to be delaying cannabis legalization and each year that they don’t they are losing out on $250 million. As of now, legislation has been introduced by the Greens to parliament with the hopes of legalizing pot around the country. The legislation is still out for public consultation though should it be given the green light, it would allow cannabis to be sold and regulated for adult use throughout the countries. In doing so, it would join the many US states who have done so successfully, as well as several other nations.

According to a new report released by the University of Western Australia, the state alone could see profits upward of $243 each year in the first five years cannabis is legalized. The revenue was quantified by calculating incomes made from legalizing pot, taking into consideration the frequency and form that marijuana is consumed plus the costs incurred by enforcing laws. The report, entitled “An Economic Case to Legalise Cannabis in Western Australia”, was put together also using data from several sources including the Australian Crime Commission, the Australian National Drug Strategy Survey, the National Drug and Alcohol Research Centre of the University of NSW, and the Australian Criminal Intelligence Commission. 

“We wanted to find out the actual truth on this, and we commissioned this not expecting any particular result,” explains Dr. Brian Walker, leader of the Legalise Cannabis WA Party, who authorized the report. “This is the first time anyone has shown their working, and set out exactly how their figures were arrived at,” he told ABC Radio Perth’s Nadia Mitsopoulos.

“On the spending side we’ve got stuff like your police – for chasing a cannabis crime – the courts and the corrective services for managing that. Altogether, that’s about $100 million per year,” he adds.

Additionally, they considered estimated figures to see potential income from taxes conservatively. The researchers state that it could be safe to assume a 25% tax on recreational cannabis, resulting in a cool $137 million of direct tax revenue in WA alone, should annual sales reach around $686 million. Then there is also the income from licensing fees from businesses who want to sell marijuana, which could inject some $5.6 million annually.

The State Of Cannabis In Australia Now

As of the time of writing, it’s illegal to grow, possess, sell, or consume marijuana. However, just like in the United States, the law is different from one territory and state to another.


Depending on the location in Australia, there are fines for various amounts of cannabis found in possession. The only exception is in the Australian Capital Territory, where residents can legally own as much as 50g of cannabis for adult-use without the need for a prescription. Everywhere else, cannabis possession without a doctor’s prescription can set you back on a fine anywhere from a few hundred to a few thousand dollars, and the risk of going to jail.

But since 2016, medicinal cannabis has been legal. Registered doctors are allowed to prescribe cannabis in several different forms to treat many health conditions. Opponents of legalization in Australia feel that it’s actually far too easy to get your hands on medical marijuana, and that the situation has become far too liberal.

And according to 2019 data, there were around 600,000 Australians who were already consuming medical cannabis. These figures come from a report conducted by the Lambert Initiative, though these numbers have already increased significantly especially given the quantity of doctors who have been lining up to register and prescribe pot.

“There’s been a dramatic increase in the number of prescriptions issued for medicinal cannabis in the past two years,” explains Professor Iain McGregor, the Lambert Initiative for Cannabinoid Therapeutics’ Academic Director, as per a University of Sydney article . “But we have good evidence that the number of people using cannabis to treat ailments is substantially higher than this,” he adds.

Medicinal cannabis is one thing, and adult-use is another. The cannabis legalization bill of the Greens could “provide for the registration of cannabis strains, the regulation of cannabis and the establishment of the Cannabis Australia National Agency.” A national cannabis licensing scheme as well as a regulator would be established, both of whom would play important roles in overseeing grow operations and sales around the country.

Furthermore, the bill would make it legal to grow a maximum of 6 cannabis plants at home. Businesses can also sell pot to licensed businesses, such as cafes or dispensaries. Much of it will be similar to the model already in place in Canada.

It isn’t enough to legalize just medicinal use cannabis, and just like we have observed in other countries, it’s causing more harm than good. “Law enforcement is spending billions of public dollars failing to police cannabis, and the opportunity here is to turn that all on its head by legalizing it,” said Greens Senator, David Shoebridge.

Conclusion

It’s clear that economically and politically speaking, decriminalization of cannabis is the way to go. This is what is working for other countries, and even the public thinks so. Keeping cannabis illegal has proven to be harmful for the community – and expensive for law enforcement. Nobody wins. It’s high time that Australia legalizes adult-use cannabis already.

Source: https://cannabis.net/blog/news/australia-is-punting-away-250-million-a-year-in-tax-revenue-by-not-legalizing-cannabis-says-new

Business

EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices

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A growing coalition of European industry groups is intensifying pressure on regulators to take decisive action against Google over allegations of unfair search practices that could reshape competition rules across the region’s digital economy.

Investigation Under Digital Markets Act Gains Momentum

The case is being examined by the European Commission under the European Union’s landmark Digital Markets Act (DMA), introduced to curb the dominance of major technology platforms and ensure fair competition.

Launched in March 2024, the investigation focuses on whether Google has been prioritising its own services in search results, potentially disadvantaging rival businesses that rely on online visibility to reach customers.

Industry Groups Demand Swift Action

Several prominent European organizations have jointly urged regulators to conclude the probe without further delay. They argue that prolonged investigations allow alleged anti-competitive practices to continue, putting European companies—especially startups—at a disadvantage.

Signatories include the European Publishers Council, the European Magazine Media Association, the European Tech Alliance, and EU Travel Tech.

In a joint statement, these groups warned that delays in enforcement are affecting innovation, profitability, and growth prospects for regional businesses competing in digital markets.

Google Denies Allegations

Google has rejected claims of bias, stating that its search algorithms are designed to deliver the most relevant and useful results to users. The company has also proposed adjustments to address regulatory concerns.

However, critics argue that these changes are insufficient and fail to address the core issue of market dominance.

Potential Billion-Euro Penalties

If found in violation of the DMA, Google could face significant financial penalties. Under EU rules, fines can reach a substantial percentage of a company’s global turnover, potentially amounting to billions of euros.

Regulators may also impose corrective measures requiring changes to business practices, which could have long-term implications for how digital platforms operate in Europe.

Wider Implications for Big Tech

The case highlights ongoing tensions between European regulators and major U.S. technology firms. In recent years, the EU has taken a more aggressive stance in enforcing competition laws, aiming to create a level playing field for local businesses.

A final ruling against Google could set a major precedent, influencing future enforcement actions and shaping the regulatory landscape for global tech companies operating within Europe.

As scrutiny intensifies, the outcome of the investigation is expected to play a critical role in defining the future of digital competition across the European Union.

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AI & Technology

Amazon Faces Potential Criminal Trial in Italy Over €1.2 Billion Tax Evasion Allegations

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Milan: U.S. tech giant Amazon is facing the prospect of a major legal showdown in Italy, after prosecutors in Milan formally requested a court to move forward with criminal proceedings over alleged tax evasion totaling approximately ₹12,500 crore (€1.2 billion).

The case targets Amazon’s European division along with four senior executives, marking one of the most significant tax-related investigations involving a global e-commerce platform in Europe.

Trial Push Despite Multi-Million Euro Settlement

The move comes even after Amazon reached a financial settlement with Italian tax authorities in December, agreeing to pay around ₹5,500 crore (€527 million), including interest, to resolve part of the dispute.

Typically, such settlements lead to the closure of criminal investigations. However, Milan prosecutors have opted to proceed, signaling a tougher stance on alleged corporate tax violations.

A preliminary hearing is expected in the coming months, where a judge will decide whether to formally indict the company and its executives or dismiss the case.

Allegations of VAT Evasion Through Marketplace Sellers

At the center of the investigation are claims that Amazon’s platform enabled non-European Union sellers to avoid paying value-added tax (VAT) on goods sold to Italian consumers between 2019 and 2021.

Prosecutors allege that the company’s marketplace structure allowed thousands of foreign vendors—many reportedly based in China—to operate without fully disclosing their identities or tax obligations. This, authorities argue, led to substantial VAT losses for the Italian government.

Under Italian law, online platforms facilitating sales can be held partially liable if third-party sellers fail to comply with tax requirements, a key point in the prosecution’s case.

Italian Government Named as Affected Party

In their filing, prosecutors identified Italy’s Economy Ministry as the injured party, citing significant financial damage resulting from the alleged tax evasion.

Legal experts say the outcome of the case could have wide-ranging implications across the European Union, where VAT systems are harmonized and similar compliance rules apply to digital marketplaces.

Multiple Investigations Add to Pressure

The VAT probe is just one of several legal challenges facing Amazon in Italy. The European Public Prosecutor’s Office is reportedly examining additional tax-related issues covering more recent years.

Meanwhile, Milan authorities are pursuing separate investigations into alleged customs fraud linked to imports from China and whether Amazon maintained an undeclared “permanent establishment” in Italy—potentially exposing it to higher tax liabilities.

In a separate regulatory action, Italy’s data protection authority recently ordered an Amazon unit to stop using personal data from over 1,800 employees at a warehouse near Rome.

Amazon Denies Allegations

Amazon has consistently denied wrongdoing and indicated it will strongly contest the allegations in court if the case proceeds. The company has also warned that prolonged legal uncertainty could impact investor confidence and Italy’s appeal as a destination for international business.

Broader Impact on Europe’s Digital Economy

If the case moves to trial, it could become a landmark moment for the regulation of global e-commerce platforms in Europe. Governments across the region are increasingly scrutinizing how digital marketplaces handle tax compliance, especially in cross-border transactions.

With online retail continuing to expand, regulators are under mounting pressure to ensure that multinational platforms and third-party sellers adhere to the same tax rules as traditional businesses.

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Aviation

IndiGo Crisis Exposes Risks of Monopoly: What If Telecom or E-commerce Collapses Next?

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Airports across India witnessed scenes of distress and confusion as thousands of passengers were stranded due to IndiGo’s massive flight disruptions. Families with medical emergencies, funerals, and personal crises were left helpless as the airline cancelled hundreds of flights without adequate communication or support.

Passengers described desperate situations — a mother pleading for sanitary pads for her daughter, a woman unable to transport her husband’s coffin, and others stranded while trying to reach family funerals or hospitals. “It was like a lockdown at the airport,” one passenger said, describing the panic that unfolded as IndiGo’s mismanagement crippled operations nationwide.

Root Cause: IndiGo’s Market Monopoly

The turmoil, industry experts argue, stems from IndiGo’s monopolistic control over India’s domestic aviation market. The airline operates nearly 2,100 flights daily and holds around 60% market share — meaning every second plane flying within India belongs to IndiGo.

This dominance has given the company unparalleled influence. When IndiGo falters, the entire aviation system suffers. Passengers are left with few alternatives, as other airlines lack capacity to absorb stranded travellers. The result: skyrocketing ticket prices, chaos at terminals, and total dependence on a single private operator.

Aviation pioneer Captain G.R. Gopinath, founder of Air Deccan, criticised the government’s inaction, noting that on some routes, IndiGo’s economy fares surged to ₹1 lakh. He compared the situation to a hostage crisis, writing that the airline “held the system ransom” and forced regulators to defer new safety rules meant to protect pilots and passengers.

Government Intervention and Regulatory Weakness

The crisis erupted after IndiGo failed to comply with the Flight Duty Time Limitations (FDTL) — rules introduced by the DGCA in January 2024 requiring adequate rest for pilots. Despite having nearly two years to adapt, IndiGo blamed the rule for operational disruptions, citing a shortage of pilots.

Under mounting public pressure, the government stepped in, temporarily relaxing FDTL norms and capping airfare hikes. Officials claimed the move was to protect passengers, but analysts say it exposed the state’s vulnerability to corporate monopolies. “The government had no option but to yield,” said one aviation policy expert, pointing out that ignoring safety regulations for short-term relief could have long-term consequences.

The crisis also rekindled memories of the June 2025 Air India crash near London, which claimed over 240 lives. Experts warn that compromising pilot rest and safety standards to maintain flight schedules could risk another tragedy.

If Telecom Giants Fail: A National Paralysis

The article raises a troubling question — what if a similar crisis struck the telecom sector, where Jio and Airtel together control nearly 80% of subscribers and serve over 780 million users?

If both networks failed simultaneously, the repercussions would be catastrophic. Internet shutdowns would halt UPI transactions, online banking, OTP verifications, video calls, OTT streaming, and emergency communications. Critical services such as airports, hospitals, stock exchanges, and small businesses — many of which rely on WhatsApp and digital payments — would come to a standstill.

In essence, a telecom breakdown could paralyse India’s digital economy, exposing the nation’s dependence on a duopoly.

E-commerce Monopoly: Another Fragile Ecosystem

The same risk looms over the e-commerce sector, where Amazon and Flipkart dominate nearly 80% of the market. A disruption similar to IndiGo’s could cripple daily life — halting delivery of groceries, medicines, and essential goods, freezing refunds and customer support, and leaving small sellers without platforms to trade.

Local retailers, freed from competition, might exploit shortages by inflating prices. Such a scenario underscores the perils of market centralisation in sectors critical to everyday living.

A Wake-Up Call for Regulators

The IndiGo crisis, analysts say, is a warning shot for policymakers and regulators. A single company’s operational failure exposed systemic weaknesses in India’s infrastructure and consumer protection mechanisms.

As the aviation regulator DGCA investigates and IndiGo works to restore normalcy, the broader lesson remains clear: unchecked monopoly power in any essential service — whether air travel, telecom, or e-commerce — poses a direct threat to economic stability and citizen welfare.

Without stronger competition laws, redundancy frameworks, and regulatory oversight, India risks repeating this crisis across multiple sectors — each time with millions of citizens paying the price.

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