Moreover, the cost of marijuana will be set at one dollar per gram, intended to undercut the current price of USD 1.40 on the illegal market.
Prior to the passage of the new legislation, the consumption of marijuana in Uruguay was not penalized, but its sale and production was considered a criminal offense.
The country's National Drug Board estimates that there are nearly 120,000 marijuana users in Uruguay from a population of 3.3 million. Consumer groups, however, estimate the number of users to be at around 200,000.
The bill has triggered debate in Latin America over the issue of the illegal drugs trade and the problems it creates.