Germany: Press releases key points of legalization of adult use

The German news agency RND published a notice with exclusive details on the new proposed legislation to legalize cannabis for adult use. The article, which gives an overview of the key points proposed by the German health minister to the Government, is echoing through the cannabis industry around the world.

Plans for the legalization of cannabis in Germany are moving forward and, according to information released this week, Health Minister Karl Lauterbach (from the SPD political party) is fulfilling his promise. The minister announced a key issues document for the autumn, which has now been released, with the next target being the end of the year, when the minister pointed to a draft law prepared.

The document was not validated by the German Federal Government, as this is a matter that involves several ministries. A spokesperson for the minister of health told RND that the ministries of health, justice, economy, nutrition and the Ministry of Foreign Affairs are involved. The goal is to stop considering cannabis a narcotic.

The draft of legalization in Germany: Key points

Adult citizens (aged 18 and over) will be able to purchase and possess cannabis for recreational purposes, but will have a possession limit of 20 grams of cannabis — it is unclear whether this restriction applies exclusively to possession or will limit sales at this amount. However, being older is not enough to consume cannabis, according to the Ministry of Health. Those aged between 18 and 21 are restricted to varieties with less than 10% THC. Cannabis sales to the remaining public will be capped at 15% THC, a move intended to prevent cannabis-related brain damage. Recreational cannabis will be sold in a plain outer packaging, without promotional design according to these key points. Advertising related to cannabis will also be generally prohibited, such as “advertising to buy” at points of sale or on the Internet.

In terms of taxation, sales of cannabis products are automatically subject to sales tax (VAT). Key points also suggest that a THC-based tax assessment may be appropriate. However, the tax burden should allow the prices of legal spaces to approach the price of the illicit market.

The key points disclosed are that in an effort to combat and suppress the black market, authorized retailers must sell cannabis, but pharmacies must also be able to sell these products. The measure is justified, according to the key points, by the broader scope, particularly in rural areas”, which includes the online shopping, as well as “specialized stores with consumer options”.

According to the key points, production would also be carried out on German territory, a necessary condition for compliance with EU rules, as had been reported the Cannareporter, because importation is out of the question for EU and international law reasons, as it is intended for non-medical purposes.

In this way, the production of cannabis for the European giant market will be limited, according to these key points, to licensed producers in Germany, who will guarantee the entire supply of recreational cannabis.

A long way to go

Despite successive advances and frenzy around this issue, the matter is still far from being decided. According to a post by Alfredo Pascual, Vice President of Investment Analysis at Seed Innovations, “there is still a long way to go, as the first bill still needs to be drafted and presented to parliament, where the legislative process must begin at the beginning of the year. next year".