The Malaysian Insider :: Features
The Malaysian Insider :: Features |
| Colorado legislature votes to tax recreational marijuana Posted: 10 May 2013 03:02 AM PDT
The measure, which would impose a 15 per cent excise tax plus a 10 per cent statewide sales tax on retail pot purchases, was approved as part of a package of measures to implement Colorado's landmark marijuana legalisation law enacted by voters last November. Democratic Governor John Hickenlooper was expected to sign the legislation. Supporters of the measures hailed the work of lawmakers in crafting legislation to carry out the will of the voters. "The passage of these bills marks a major milestone toward the creation of the world's first legal, regulated, and taxed marijuana market for adults," said Christian Sederberg, author of the ballot question that voters approved. The proposed taxes, seen as necessary to support the larger regulatory framework of the system, are still subject to a ballot referendum under a Colorado law requiring all new taxes be approved directly by voters. A survey commissioned by the Marijuana Policy Project, and conducted last month by North Carolina-based Public Policy Polling, found that 77 per cent of the 900 registered Colorado voters polled favored the proposed taxes. In November, voters passed a constitutional amendment making Colorado one of just two states - the other was Washington - legalizing possession, cultivation and use of marijuana by adults for recreational purposes for the first time. In Colorado, 53 per cent of the voters supported legalisation of pot, versus 47 per cent who opposed it. The outcomes in Colorado and Washington, already among nearly 20 states with laws on the books legalizing marijuana for medical use, put both states in further conflict with the federal government, which classifies cannabis as an illegal narcotic. Jeff Dorschner, spokesman for the US Attorney's Office in Denver, said in a statement following the legislative action that federal authorities were monitoring the pot legalisation movement. "The Department of Justice is taking into consideration all aspects of this issue in both Colorado and Washington as part of its decision-making process regarding what response the federal government should have to the legalisation initiatives in the two states," he said. SCHOOL FUNDING Under Colorado's new marijuana law, personal possession of up to an ounce (28 grammes) of marijuana is legal for anyone at least 21 years of age. Personal cultivation of cannabis is limited to six plants per person. The statute also called for cannabis to be legally sold and taxed at private, state-licensed stores modeled after a regime many states have in place for alcohol sales. Implementing legislation passed on Wednesday would give private dispensaries already in operation for distribution of medical marijuana first crack at the new retail sales licenses. How much revenue the taxes, if enacted, would generate is unclear. But under the ballot measure passed by voters in November, the first US$40 million (RM120 million) raised would be earmarked for public school capital projects. Washington state's voter-approved marijuana measure came with a built-in taxing scheme that will not be put into effect until the larger regulatory system is devised by that state's Liquor Control Board. Approval of the tax and regulatory package in Colorado by the state House of Representatives and state Senate, both controlled by Democrats, came on the final day of the legislative session in Denver. Colorado Attorney General John Suthers, a Republican who opposes pot legalisation, issued a statement saying he was "relieved" that the legislature at least passed a legal blood-level limit for driving. On Tuesday, lawmakers passed a driving-while-stoned bill that set a 5-nanogram-per-milliliter threshold for tetrahydrocannabinol, the active ingredient in marijuana. "It is difficult to do a good job of implementing bad public policy," he said. Critics of legalisation say the social harms of marijuana - from anticipated declines in economic productivity to a rise in traffic and workplace accidents - would trump any benefits. In addition to potential tax revenues, backers of legalisation say anti-pot enforcement has accomplished little but to penalize otherwise law-abiding citizens, especially minorities. They also argue that ending pot possession prosecution frees up strained law enforcement resources and strikes a blow against drug cartels, much as repealing alcohol prohibition in the 1930s crushed bootlegging by organised crime. – Reuters |
| In eastern Syria, oil smugglers benefit from chaos Posted: 10 May 2013 02:53 AM PDT  There are at least 11 oil fields in Deir al-Zor province. - Reuters pic BEIRUT, April 10 — In Syria's eastern province of Deir al-Zor, a network of tribes and smugglers has exploited the chaos of war to create an illicit oil trade that makes European hopes of buying crude from President Bashar al-Assad's opponents a distant prospect. Powerful Sunni Muslim tribes have deployed armed fighters around oil production facilities and pipelines that have fallen under their control and set up smuggling and trade deals, according to sources in the province including rebels, an oil company employee and people with ties to the tribes. Deir al-Zor is critical to Syrian oil output that has more than halved in the past two years of fighting. The hijacking of the oil industry by tribes complicates Western efforts to help the Syrian opposition fund itself and will make any future reconstruction even more difficult. "Each tribe now is in control of at least a part of an oil field, it depends how big it is and how many fighters it can deploy," said the state oil firm employee who gave his name as Abu Ramzi. As well as production facilities, tribal fighters had seized control of pipelines, often drilling into them to extract oil. Thousands of barrels of crude are smuggled to Turkey daily by small tankers using farm roads, said Abu Ramzi. The oil is taken to the Bab al-Hawa or Tal Abiad border posts, a source close to the smugglers in Deir al-Zor said. The price of a barrel depends on the quality of the crude oil and the cost of transport - the shorter the trip the cheaper - but it could be 8,000 Syrian pounds (RM150), he said. In recent weeks, some wealthy smugglers have begun using "mobile refineries" stationed on trucks to process crude into fuel and other products. Costing up to US$230,000 (RM688,000), a medium sized mobile plant can refine up to 200 barrels a day. Fuel smuggled into Turkey sells for roughly 50 per cent more than in Syria. TRIBAL POWER Western-backed rebel commanders, who the European Union hoped would benefit from last month's EU decision to allow the purchase of oil from the Syrian opposition, concede they have little immediate prospect of winning a share of the trade. The power of the tribes in the deeply conservative and traditional east of the country, and the fact that they have fighters in many of the different rebel brigades, makes tribal leaders almost untouchable. The patchwork of tribes and fragmented opposition are complicating Western efforts to find an effective response to the crisis in Syria. The other force in the region is the al Qaeda-linked Nusra Front, which has reached an understanding with the tribes over the division of spoils, sources say. The Nusra Front has used its profits to buy more weapons and pay its fighters. The Western-backed rebel military command fears that any attempt to take control of the oil fields would trigger a bloody confrontation and create a lasting cycle of tribal revenge. Its immediate priority is to take over the city of Deir al-Zor before dealing with those it calls the "oil thieves" - an emerging class of warlords linked by oil, money and arms. "This is very difficult, people now have tasted money and also tasted the power that comes with it. They will not give up without a fight," said a rebel commander. "The rebels do not want to clash with anyone right now. It is a tribal province and anything could backfire against the rebels - who themselves are sons of tribes." Some rebel sources said their commanders had made contact with some tribes, seeking to convince them to share a percentage of their profits. So far the talks have been fruitless. "We can not get close to it without blood, let's be realistic," one source in the rebel command said via Skype. Another source close to one of the strongest tribes in the area said the collapse of central authority after two years of conflict in Syria had allowed the tribes to become increasingly organised and powerful. "These people will not allow anybody to touch the pipelines," he said. VACUUM There are at least 11 oil fields in Deir al-Zor province - the largest of them, al-Thayem just 6 km (four miles) from the provincial capital of Deir al-Zor city, which lies on the Euphrates River upstream of the border with Iraq. As Assad's forces retreated in recent months and rebel brigades focused on trying to take Deir al-Zor city, powerful tribal sheikhs stepped in to fill the security vacuum. Gradually the tribes began taking over the oil wells. With the presence of hundreds of thousands of Syrians in Turkey, it was easy to establish contact with Turkish businessmen. Soon, the tribes had control of the provincial oil firm too. Other tribes joined in. Smaller ones formed alliances to compete with bigger ones. Dozens of fighters were deployed around oil sites and vehicles mounted with guns - or even stolen tanks - were stationed to guard the new sources of wealth. The government still has a foothold in the area. Assad's forces control the city of Deir al-Zor and most of al-Thayem oil field. Some oil is still pumped hundreds of miles to the west to the government-controlled Banias refinery on the Mediterranean. In the three decades of oil production in Deir al-Zor, residents of the mostly desert province say they saw few benefits and continued to make a living from agriculture. "Now that the government is no longer present here, the oil returned to us - but only briefly because it has been confiscated by thugs, gunmen and tribes," said a resident who only gave his first name, Mazen. That bitterness is echoed by people who have lost privileges they enjoyed under government rule, only to see men with guns and tribal connections grow wealthy. "Some are so rich now that they are saving up their money in bags. Some have billions of Syrian pounds. Their luck has changed. You have people who went to bed as a poor vegetable seller and woke up rich oil smugglers." For others, the prospect of growing rich has eclipsed earlier talk of toppling Assad. Some are buying houses, land, others are taking a second wife. "It is all selfishness. The revolution vanished in Deir al-Zor since we tasted the oil, it is a curse," said a commander who heads one of the main rebel brigades in the province. The illicit oil business has a direct health impact too, residents say. The primitive distillation tanks which have sprouted across the province create a blanket of black smoke over villages, causing breathing problems. A resident called Nour said that some people are burning the oil to refine it. "There are many diseases appearing. Some people are now covered with boils. They do not wear anything for protection, they even smoke cigarettes while they are doing it." – Reuters |
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