If we look at the stats presented by the administration at New Jersey, the estimates for growth in marijuana industry may reach to the sky-rocketing amount of $1.2 billion. Gov. Phil Murphy has recently succeeded in marijuana legalization, and now investors are interested in finding new scopes for profits with marijuana companies.
The chief executive of MJIC, Karban, is now updating his business strategy in such a way that more investments can be ensured to marijuana startups and nj marijuana dispensary. Their prime idea is to control the distribution network with the smooth flow so that plants can be easily transferred from greenhouses to the shelves in the stores. In a recent interview he said that although the profits at present condition are disproportionate, the teams are basically leading with national-level ambitions and they expect to expand the services to every state.
The growth estimates for marijuana companies:
Although analysts keep on providing some projections from time to time, they are not always true. As per a recent update, when the sales for anyone above 21 age group became legal, Californians made in investment of $339 million in some marijuana products. But as per BDS analytics of Colorado, it was 13% lower when compared to the state projections. Note that, state is still working on releasing tax and sales figures.
As per Murphy, the marijuana industry is expected to generate the overall tax revenue of $300 million per year; it comes out to be $1.2 billion in terms of sales with 25% tax rate. On the other side, a law firm at Roseland projected the tax revenue of $1 billion from legal sales in New Jersey; it is expected to be much higher than the combined tax windfalls of Washington and Colorado.
Federal government banking restrictions:
Here is one important point to mention; although the transactions are flowing into the industry and nj marijuana dispensary, the investors are largely using cash due to federal banking laws. As per law, federal government-chartered banks are not allowed to accept money that comes from marijuana business; hence, most of the transactions are happening through cash payments. The great news is that John Chiang, California Treasurer has given a proposal for establishing a state-run bank for serving marijuana industry and nj marijuana dispensary and Murphy is also in favor of this idea. California based investors are expecting that marijuana could soon become a mainstream product in the state; with this, it can also benefit the economy as well.
If we consider the current scenario, it is difficult to bring marijuana companies to mainstream business until banks start supporting it. As the industry is rising with each passing day, it is difficult to regulate all transactions in the form of pure cash. In order to ensure sustainable returns while leading interest among investors, it is important to find some ways to connect marijuana transactions to the banks. The government needs to revise the laws accordingly so that this growing industry could benefit national economy for long run.