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Notes on the current state of cannabis regulation in Costa Rica
[/vc_column_text][us_separator][vc_column_text]There are some topics that can stir mixed feelings in society at large, one of them being cannabis. Every time cannabis is the subject of analysis, the same questions arise: Is it safe? Is it addictive? Should we legalize it? Does it really work to treat diseases? These and many other questions were discussed in the Legislative Assembly when the Law on Cannabis for Medicinal and Therapeutic Use and Hemp for Food and Industrial Use, Law No. 10,113, was approved. After extensive debates between Congress and the Executive Branch, the country finally approved a law regulating the production, industrialization, and marketing of hemp and medicinal cannabis; a law that is expected to help revive the economic situation. Specifically, the Law allows authorities to issue licenses for the production and processing of cannabis for medical purposes, and with respect to the production and processing of hemp for industrial and food use, this is free and does not require any special prior approval from the authorities. Although various sectors have criticized the Law as "questionable," what cannot be questioned is that the hemp plant concentrate known as CBD (which stands for cannabidiol) has virtually no addictive properties. Cannabis itself has more than 100 different elements. THC (which stands for tetrahydrocannabinol) is the synthetic one that causes the famous "high."high” that characterizes recreational cannabis use. CBD-dominant strains have almost zero THC, so patients report not experiencing this effect when consuming the substance. Among the advantages of CBD, it is important to mention that it helps mitigate sleeplessness and nervousness, and is even used in the treatment of epilepsy. Furthermore, legalization could help revitalize the country's economy. According to estimates by the Foreign Trade Promotion Agency (PROCOMER), the hemp and medicinal cannabis market will be worth $35 billion annually by 2025, a figure that would relieve the already weak state coffers. Additionally, with the industrialization of hemp, rural agriculture could benefit from a product with high demand and great revenue potential. Back in the Legislative Plenary, Bill No. 23,343 is currently being discussed, due to the fact that Law 10,113 establishes a tax on profits with a surcharge of one percent (1%) on net income. However, according to Article 4 of the Regulatory Law on Current Exemptions, Repeals and Exceptions No. 7,293,"(…) The importation or local purchase of medicines will not be subject to any type of tax except the value added tax, whose rate is set at two percent (2%) and the tariff duties that must be paid in full. A medicine is defined as any product used in the diagnosis, prevention, treatment and relief of diseases or abnormal physical conditions or their symptoms and in the restoration or modification of organic functions in human beings.”Since cannabis is recognized as a medicinal substance, it should be governed by the same criteria as medications in tax matters, thus ensuring that more people have access to medicinal products derived from this plant. This tax increases prices and restricts access. Finally, another aspect discussed in the bill is limiting the number of licenses granted for marketing. This limitation would encourage illegal cultivation due to pharmacies' inability to meet demand, as studies have been conducted in other countries, such as Uruguay, where production does not keep pace with demand. [/vc_column_text][us_separator][vc_column_text]Written by: Leonardo Alfaro [/vc_column_text][/vc_column][/vc_row]
