Connect with us

Business

New Report Shows Colorado Cannabis Tax Revenue Exceeds Tobacco, Alcohol

Published

on

The in-depth analysis explores the most recent data and how the funds are being shared between various Colorado government agencies and organizations.

The Colorado Legislative Council Staff (LCS), described as the “nonpartisan research arm of the Colorado General Assembly,” released a report on Aug. 16 detailing how cannabis taxes are benefitting the state.

According to the analysis, Colorado annual cannabis tax revenue may have decreased in FY 2021-2022 and FY 2022-2023, but cannabis sales remain a consistent stream of funds for Colorado budget—more than any other regulated substance.

In FY 2022-2023, data shows that Colorado collected $282.3 million in cannabis tax revenue, compared to $233.9 million from cigarettes, $60.5 million from tobacco products, $56.4 million from nicotine products, and $56.1 million from alcohol.

Cannabis tax revenue comes from a 15% excise tax, 15% special sales tax, and 2.9% general sales tax. Recreational cannabis purchases are applied with the excise tax and special sales tax, but only state sales tax applies to medical cannabis sales.

In a breakdown of where cannabis tax revenue is distributed, medical cannabis 2.9% sales tax goes directly into the Marijuana Tax Cash Fund while the adult-use cannabis sales 15% special sales tax is divided into the Marijuana Tax Cash Fund, State Public School Fund, and local governments. The adult-use excise tax goes directly into the BEST (Building Excellent Schools Today) Fund.

Some of the state’s cannabis tax revenue funds went toward a variety of programs such as substance use disorder services ($16.6 million), affordable housing construction grants and loans ($15.3 million), school health and professionals grant program ($15 million), mental health services ($6.1 million), black market cannabis interdiction/state toxicology lab ($4.4 million), pesticide control and regulation ($1.2 million), marijuana impaired driving campaign ($1.1 million), and school bullying prevention and education ($1 million).

“Taking into account the statutory distributions and the MCTF [Marijuana Tax Revenue and Education] appropriations, K-12 education received about 37 percent of total spending from marijuana revenue for school funding and school construction,” the analysis states. “The Department of Human Services received about 20% for a variety of programs, including those focused on behavioral health and addiction.”

The distribution of cannabis tax revenue was divided among the Department of Human Services ($57.5  million), school construction ($55.9 million), school funding ($52.4 million), general fund ($30.7 million), Department of Public Health and Environment ($23.6 million), local governments ($21.9 million), Department of Local Affairs ($17.5 million), Department of Higher Education ($11 million), Department of Public Safety ($7.6 million), and “other” ($14.1 million) which includes a variety of smaller departments.

While FY 2020-2021 yielded a record high of $425 million, FY 2021-2022 decreased slightly to $366 million, followed by FY 2022-2023 at $282 million.

A report released by the Tax Policy Center in September 2022 noted both Colorado and Washington cannabis sales generated more tax revenue than alcohol or cigarettes in FY 2022. 

Similar reports, such as one published by the Arizona Dispensaries Association in March 2022, showed that cannabis tax revenue reached $6.3 million, which is more than the combination of tobacco ($1.7 million) and alcohol ($2.7 million) for that month.

The California Governor’s Office of Business and Economic Development (GO-Biz) awards cannabis tax funds to a variety of approved organizations. The most recent annual awards contained more than $50 million from FY 2022-2023 split between 31 organizations, from government agencies to youth organizations. In FY 2020-2021, GO-Biz split $29.1 million between 16 awardees, and in FY 2021-2022, GO-Biz awarded $30 million to 58 chosen recipients. The state recently opened up a new grant application window between Aug. 14-Sept. 18, with chosen organizations to be announced sometime in spring 2024.

A report from Whitney Economics in May showed that the legal cannabis industry paid more than $1.8 billion in taxes in 2022. However, the chief economist at Whitney Economics stated that these taxes, which are driving many cannabis business owners into strife, are on the “brink of systemic collapse.”

Source: https://hightimes.com/news/new-report-shows-colorado-cannabis-tax-revenue-exceeds-tobacco-alcohol/

Business

Jio’s 1,600-Satellite LEO Constellation Gets Technical Green Light

Published

on

By

Reliance Jio has crossed a significant milestone in its space connectivity ambitions after its proposal to deploy a Low Earth Orbit (LEO) satellite constellation of around 1,600 satellites received a positive technical assessment from the Indian National Space Promotion and Authorisation Centre (IN-SPACe).

The evaluation, conducted jointly by IN-SPACe, the Indian Space Research Organisation (ISRO), and the Wireless Planning and Coordination (WPC) wing of the Department of Telecommunications, reportedly concluded that Jio’s proposed system meets the required technical standards and is comparable to leading global satellite broadband networks.

India’s Indigenous LEO Satellite Vision

Under the proposal, Reliance Jio plans to deploy between 1,600 and 1,650 satellites in Low Earth Orbit at an altitude of around 650 kilometres.

The planned constellation is expected to provide high-speed satellite connectivity across India, with approximately 32 satellites visible from any location at a given time. The company aims to roll out the network within the next two to three years, subject to regulatory approvals.

According to industry estimates, the satellite system could deliver 4.5 to 5 terabits per second (Tbps) of total data capacity, making it one of the largest satellite broadband projects proposed in India.

The project is expected to require an investment of $10–15 billion (approximately ₹95,000 crore to ₹1.42 lakh crore), reflecting the scale of infrastructure needed for satellite manufacturing, launches, ground stations, and user terminals.

Regulatory Process Moves Forward

Following the successful technical review, the proposal is expected to move into the next phase of regulatory approvals.

The government may now assist Jio in securing orbital slots, coordinating spectrum usage, and filing applications with the International Telecommunication Union (ITU), the global body responsible for managing satellite orbit and frequency allocations.

Obtaining orbital rights remains a critical step, as Low Earth Orbit has become increasingly competitive due to the growing number of satellite broadband projects being planned worldwide.

Officials also indicated that the proposed satellite architecture has been designed to coexist with future Indian LEO constellations, allowing multiple domestic operators to share orbital resources efficiently.

Broadband, Mobile Connectivity, and Strategic Applications

Jio plans to use the satellite network to provide a range of communication services, including satellite broadband, mobile backhaul, enterprise connectivity, and direct-to-device (D2D) satellite communication, particularly in remote and underserved regions where conventional telecom infrastructure is limited.

The company also intends to establish 20 to 22 ground stations across India to support network operations.

Apart from commercial telecommunications, officials have highlighted the project’s potential strategic importance. A domestically developed satellite constellation could strengthen India’s communication infrastructure, reduce dependence on foreign satellite operators, and support national security requirements.

Reports suggest preliminary discussions are underway regarding the possibility of integrating defence-related payloads into some satellites, enabling both civilian and strategic use.

Major Step for India’s Space and Telecom Sectors

Industry analysts view the technical clearance as an important milestone in India’s expanding private space ecosystem. If Jio secures the remaining regulatory approvals and international orbital clearances, the project could become the country’s first large-scale indigenous LEO satellite broadband network.

The initiative also aligns with India’s broader efforts to expand digital connectivity while strengthening its presence in the global satellite communications market.

Continue Reading

Business

Alleged Crores Pharma Scam Mastermind Arrested from Surat

Published

on

By

After evading law enforcement for nearly 13 years, an accused linked to a large-scale pharmaceutical fraud case has been arrested by Delhi Police from Surat, Gujarat. The suspect is alleged to have orchestrated a series of financial scams involving fake identities, forged documents, and dishonoured cheques used to procure high-value pharmaceutical raw materials.

Authorities say the accused, identified as Himmat Singh Lodha, is believed to have defrauded multiple pharmaceutical companies in Delhi of goods worth approximately ₹98 lakh before disappearing and remaining underground for years.

Fake Business Deals and Dishonoured Cheques Used in Fraud

Investigators claim the accused posed as a legitimate pharmaceutical trader and placed bulk orders for expensive drug ingredients, offering post-dated cheques as payment security.

In one documented case from 2013, he allegedly obtained around 550 kilograms of Gliclazide, a diabetes-related pharmaceutical ingredient, valued at over ₹26 lakh. When suppliers attempted to encash the cheques, they were reportedly returned with the remark “account closed.”

Following the transaction, the accused allegedly vacated his office and rented residence and disappeared without settling payments. He was later declared a proclaimed offender in 2016 after repeatedly failing to appear before court proceedings. Authorities had also issued a reward for information leading to his arrest.

Multiple Identities and Repeated Fraud Pattern

Police investigations further link the accused to another cheating case dating back to 2012, where he allegedly used a fake identity, “Kailash Jain,” to obtain a large consignment of Ambroxol HCL, a pharmaceutical compound used in cough medications. The value of that consignment was estimated at around ₹72 lakh.

Officials believe the accused followed a consistent modus operandi—posing as a credible businessman, securing high-value goods on deferred payment terms, and then disappearing after delivery while shutting down business operations.

Investigators suspect that forged business records, fake company credentials, and fabricated financial histories were used to build trust with suppliers and gain access to expensive raw materials.

Multi-State Surveillance Leads to Arrest in Surat

A special Crime Branch team tracked the accused through coordinated surveillance efforts across multiple cities, including Mumbai, Ahmedabad, and Surat. After nearly a month of technical monitoring and intelligence gathering, officials located and arrested him from a residential area in Surat.

Authorities also revealed that the accused had been involved in property-related activities while staying under the radar to avoid detection.

Growing Threat of Corporate Identity Fraud

The case highlights a rising trend of organised financial fraud targeting industries that rely heavily on trust-based transactions and deferred payments. Experts note that criminals increasingly exploit gaps in corporate verification systems by using fake GST registrations, temporary offices, and forged documentation to appear legitimate.

Cybercrime and financial fraud specialists warn that such schemes are becoming more complex with the widespread availability of digital business tools, making it easier to create convincing but fraudulent corporate identities.

Experts Urge Stronger Due Diligence in High-Value Transactions

Experts, including former IPS officer and cybercrime specialist Prof. Triveni Singh, emphasize the need for stricter verification procedures in commercial dealings. He noted that relying solely on paperwork or digital business profiles can expose companies to significant financial risk.

Authorities and industry experts recommend physical verification of business operations, bank account validation, and detailed background checks before engaging in high-value or deferred-payment transactions—particularly in sectors like pharmaceuticals, where single consignments can involve transactions worth crores.

Continue Reading

Business

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

Published

on

By

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.

Continue Reading

Trending

Copyright © 2022 420 Reports Marijuana News & Information Website | Reefer News | Cannabis News