EXCLUSIVE: Ending Tax Burden On Cannabis Expenses Will Help Small Businesses 'Flourish,' Says NJ Industry Leader

The Department of Justice took a crucial step in May toward reclassifying marijuana, formalizing a process to move it from a Schedule I to a Schedule III substance. This momentous policy change could have profound implications for the cannabis industry nationwide, including New Jersey, where the Benzinga Cannabis Market Spotlight is set to take place on June 17.

Potential Pharmaceutical Entry Raises Concerns

Dr. Chanda Macias, CEO of Women Grow and National Holistic, shared her thoughts on how the rescheduling could affect the cannabis market in New Jersey. According to Macias, the reclassification could provide a much-needed boost to small businesses by eliminating the 280E tax burden, allowing them to compete more effectively with illegal operations. “Rescheduling cannabis can positively impact the NJ marketplace with an opportunity for small businesses to flourish with the elimination of the 280E tax burden,” she stated.

However, Macias also stressed potential challenges, including the entry of the pharmaceutical industry into the cannabis market. “With reclassification, there is the threat of the entry of the pharmaceutical industry,” she noted, adding that this could lead to incremental growth patterns that may not immediately alert the current cannabis marketplace. Despite these challenges, Dr. Macias sees opportunities for biomedical research and local economic growth.

Strategic Shifts for Cannabis Businesses

For businesses like National Holistic, the rescheduling presents opportunities and strategic challenges. Macias emphasized the importance of maintaining the current economic structure while advocating for candidates who understand the industry’s potential. “My business strategy is to hold the current economic structure and generate as much income as possible, influence the government with candidates that understand the potential evolution of the industry, and provide more funding for cannabis operations to emerge as a dominant power,” she explained.

Mixed Reactions to Federal Rescheduling Decision

The decision to reschedule marijuana has been met with mixed reactions. While many in the cannabis industry view it as a long-overdue step toward recognizing the drug’s medical benefits, others, like Dr. Kevin Sabet of Smart Approaches to Marijuana, criticize the move as politically driven. Nonetheless, the rescheduling could pave the way for further research and reduce the tax burdens that have hampered legal cannabis businesses.

NJ Cannabis Market Preparing For Change

As the Benzinga Cannabis Market Spotlight in New Jersey approaches, industry leaders and stakeholders will closely watch the developments stemming from the Justice Department’s decision. The event will provide a platform for discussing these changes and exploring their potential impacts on the state’s cannabis market. With the new policy shift, New Jersey’s cannabis industry stands at a critical juncture, poised to shape the future of cannabis regulation and business operations in the region.

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Now Read: 69% Of Voters, Including Majority Of Republicans, Support Marijuana Legalization: Did You Catch That, Biden And Trump?

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