There has been increasing legalisation and a growing legal market for Cannabis in recent years. However, there are two central gaps in the academic and policy literature on cannabis legalisation. First, within the literature on cannabis formalisation there has been a relative neglect of the role of fiscal policy, including the role of tax as a regulatory instrument within cannabis legalisation and the potential revenue impact of legalisation programmes. Second, there is an existing study gap on the experience of lower- and lower-middle-income countries which have been substantially less studied. This study attempts to fill the study gap by drawing on the context of Malawi, which legalised commercial cannabis farming in 2020 and passed the amendment of the cannabis bill in March 2024.
In light of the recent developments, the study mainly seeks to achieve three objectives. Firstly, to determine what factors shape the cannabis taxation policy designs in lower-income country contexts. Secondly, to evaluate and anticipate the consequences of different cannabis tax designs on cannabis industries. Thirdly, to understand what factors shape cannabis taxation policy designs in lower-income country contexts like Malawi.
