A new ruling from Israel’s Legal Advisor to the Prime Minister has reportedly put an end to ongoing debate in the country about imposing high tariffs on Canadian cannabis.

According to a report in Israel’s Cannabis Magazine, the ombudsman ruled that the country’s Minister of Finance was indeed allowed to veto the import tax that was proposed by the Minister of Economy.

In April, Israel’s Finance Minister, Bezalel Smotrich, provided an official rejection of proposed tariffs of up to 165% on Canadian cannabis for medical purposes in a letter to the Minister of Economy and Industry. 

Then, about a week later, in a lengthy letter to Finance Minister Bezalel Smotrich, Minister of Economy and Industry Nir Barkat argued that Smotrich’s rejection of the tariffs on Canadian cannabis wasn’t aligned with Israeli law. 

In this new, 15-page letter, shared on July 3, 2025, the Legal Advisor to the Prime Minister ruled that the Finance Minister was within his rights to veto the decision to impose those tariffs, ending a process that was first announced in January 2024.

That process was built around allegations of “product dumping” of Canadian cannabis into the Israeli market. In July 2024, the government agency released its preliminary report on the topic. In April 2025, the government announced it was moving forward with 165% tariffs, before the challenge between the Ministries of Finance and Economy. 

The new 15-page letter, signed by Dr. Yuval Roitman, head of the economic law department at the Ministry of Justice, says, “We found no reason to cancel the Minister of Finance’s decision on the legal level.” (translated).

This would appear to put to rest the ongoing debate on the issue. You can read more about the background on this process here and here.

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