Hash and marijuana use and retail sales, tolerated in the Netherlands for 35 years now, adds 2 billion euros (2.86 b USD) annually to the Dutch economy. This is the result of 730 coffee shops selling 265,000 kilos per year. Additionally, the Dutch treasury takes in 400 million euros (572 m USD) in taxes annually. Sounds good, right? Actually, the situation could be a lot more lucrative for the government.
Even though use and retail sales are tolerated, the commerce isn't legal and growing and wholesale sales are not legal or tolerated. This means that all importation of hash and all production and wholesale sales of local marijuana are controlled by organized crime. Therefore the Dutch government misses out on any import duties or wholesale sales taxation. And, since only about 30% of the production of marijuana in the country is used in the country, the government is also missing out on the export taxes on what is Holland's third largest agricultural export.
The 400 million a year that they take in is based on the hypothesis that the retail prices are double the wholesale prices. Therefore the coffee shops are taxed on their "profit". Since they sell marijuana for 7.50 a gram, they are taxed on 3.75 of that. To increase the government income, the government needs for the retail prices to rise. To effect that, they have been increasing their busts of pot plantations; last year 5,500 greenhouses, or 15 per day, were busted, with a resulting 20% increase in the retail prices.
A hazy situation, it would seem.