The tax was due to come into force at the start of 2022 but will now be suspended until 31 December 2022 to support cannabis businesses, the San Francisco Examiner reports.

Rafael Mandelman, the city politician who proposed the tax, said: “Cannabis businesses create good jobs for San Franciscans and provide safe, regulated products to their customers.

“Sadly, the illegal market is flourishing by undercutting the prices of legal businesses, which is bad for our economy as illegal businesses pay no taxes while subjecting workers to dangerous conditions and consumers to dangerous products.

“Now is not the time to impose a new tax on small businesses that are just getting established and trying to compete with illicit operators.”