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BUSINESS TODAY 14 March 2024

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10 OPINION 14.3.2024 Cannabis revisited George Mangion George Mangion is a senior partner at PKF, an audit and consultancy firm, and has over 25 years' experience in accounting, taxation, financial and consultancy services. His efforts have made PKF instrumental in establishing many companies in Malta and established PKF as a leading professional financial service provider on the Island C annabis was first intro- duced to the Maltese Is- lands by the Phoenicians in the first millennium BC. e plant was also used extensively by the Knights of Malta during the Crusades. In the 18th centu- ry, Malta was a major producer of hemp. In the early 21st century, the Maltese government decrim- inalised the possession of small amounts of cannabis for personal use. Cannabis has undergone a normalising process given its wide adoption, social toler- ance and generally speaking a broader cultural acceptance; going from being branded as a gateway drug to being used as a therapeutic alternative to con- ventional medicine. Malta became the first Euro- pean Union country to legalize the cultivation and personal use of cannabis for adults over the age of 18. e law was passed in December 2021 and allows locals (not tourists), to carry up to 7 grams of cannabis and to grow up to four plants at home for personal use. e sale of cannabis remains illegal, but the law permits the formation of non-profit cannabis clubs where adults can legally obtain canna- bis. 7 grams of cannabis can be carried in public. Four canna- bis plants are permitted to be grown per household given that they are not seen by non-resi- dents of that household and 50 grams of cannabis is allowed to be possessed per household. Given the ever-expanding medicinal capabilities of CBD cannabis, as it is proven to pro- mote a calm mind and a positive mood, it's become an effective go-to for anxiety and epilep- sy treatment. e new law also allows all registered doctors to prescribe medical cannabis to patients, which can be acquired in local pharmacies. e effects of cannabis legalisation in Mal- ta are multifaceted and can be considered from various per- spectives, including social, eco- nomic, legal, and health-related aspects. Decriminalising the possession of small amounts of cannabis could lead to a reduc- tion in arrests and prosecutions for cannabis-related offences. is change could alleviate the burden on the criminal justice system and redirect law enforce- ment resources to more serious crimes. Malta's stance on canna- bis could influence its appeal as a tourist destination as the latter are not allowed to buy it. People wrongly assume Malta is the new Amsterdam, it's far from it, cannabis rules are only for Maltese residents and tour- ists that come here just to smoke are considered at law as nothing more than a problem that keep on feeding the black market. e government established a regulatory framework to over- see the operation of cannabis clubs, which could present chal- lenges in ensuring compliance and preventing diversion to the illegal market. e maximum amount of drugs a person can be found with to be judged by a magistrate, rather than a jury, has increased – from 300g to 500g of cannabis, from 300 to 500 ecstasy pills, and from 100g to 200g of heroin or cocaine. On a positive note, the legal- isation for medical cannabis represents an opportunity for licensed producers seeking to position themselves at the fore- front of this emerging land- scape. In fact, the legal cannabis industry is attracting more and more investors who want to di- versify their portfolios since this industry is considered one of the most promising industries. Many countries are now realis- ing the potential of this growing industry and have moved to le- galise cannabis for medical use. Uruguay was the first country in the world to legalize cannabis, followed by Canada in 2018 and ten US states have authorized recreational cannabis. Looking at the European context, can- nabis production has been de- criminalised in countries such as Spain, Germany, Belgium, Netherlands, Italy, Switzerland, Malta, Portugal and Czech Re- public. Under the new regulations, cannabis clubs must have a maximum of 500 members and cannot be within 250 metres of a school or youth centre. e association also cannot adver- tise itself, be non-profit making, with the word cannabis not al- lowed in the name of the asso- ciation. Applicants must pay a registration fee of €1,000 and the license fee starts at €8,750 for the first 50 members. Can- nabis sold must also include a label discouraging the use and also provide details. is sector was the brain child of disgraced prime minister Jo- seph Muscat. He stated that the approved projects are expected to create local capital expendi- tures of more than €110 mil- lion and 700 full-time jobs. For example, an Israeli company TechforCann announced that it will be establishing the first Eu- ropean tech accelerator for the medical cannabis industry. is project was also sup- ported by Malta Enterprise through funding that will help startups which are selected to participate in the TechforCann EU accelerator programme. It approved a number of startup projects related to Research and Development on cannabinoids, their use in different therapeu- tic indications, and innovation in industrial processes related to cultivation and extraction. However, the net impact on the number of jobs and output created by this emerging sector is unknown so it needs to be delved deeper over the coming years. Another social aspect re- mains in place: the issue con- cerning the lack of informa- tion on the use of medicinal cannabis. Patients often com- ment on the limited knowl- edge by medical practitioners, particularly as medical practi- tioners are sometimes reluc- tant to prescribe cannabis as a form of treatment. Apart from this, the price for medicinal cannabis so far is quite costly for patients. It is worth explor- ing the possibility of offering this medicine to patients at a subsidised price. Furthermore, one cannot sep- arate the use of cannabis from its long history as an illegal THC substance, which is very often abused of. Stigmatisation of the use of this drug is a strong deterrent for many healthcare providers and uncertainty will slow down the use of medicinal cannabis. Indeed, the percep- tion of the public needs to be educated, with perhaps the in- troduction of frank discussions about the use of CBD cannabis. In addition, continuous educa- tional programmes for medical practitioners are also a must, in order to remove the general stigma concerning its use. In conclusion, one reflects on how the war on drugs has not relented as more victims are falling prey to its scourge. Per- haps the partial legalization of non-THC products in Malta opens space to dream of more justice and perhaps winning on the war on drugs.

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