Israel’s Ministry of Health takes issue with tariffs proposed by Israel’s Ministry of Economy on cannabis imported from Canada.

In a report published on November 10, Israel’s Ministry of Economy has proposed levies of up to 175% on Canadian cannabis products being sold in the country’s medical cannabis program. 

The investigation, which was first announced this past January, was based on allegations of “product dumping” of Canadian cannabis into the Israeli market. 

In July, the government agency released its preliminary report on the topic, proposing tariffs from 63% to 369%, depending on the cooperation of the companies involved, before settling on lower rates in the most recent report in November. 

These rates were based on the Ministry of Economy’s investigation into domestic pricing for cannabis in Canada.

But the head of the economy, regulation and innovation at the country’s Ministry of Health, Ran Ridnik, has sent a letter to the Ministry of Economy’s Dany Tal expressing his dismay at the proposed tax rates and the process that was followed to come to such a determination. Tal has led the investigation process and reports. 

Ridnik’s letter, as first reported by Cannabis Magazine, said he is disappointed that the Ministry of Economy did not consult with the Ministry of Health, which manages the cannabis file in Israel, in their investigation. 

Ridnik also takes issue with the methods the Ministry of Economy used to determine the proposed tariffs, which looked at wholesale prices in Canada, and said that such a move would only increase the overall price of cannabis in Israel and encourage consumers to purchase from the illegal market rather than Israel’s regulated medical cannabis market. 

[Translated] “The economic impact of the one-time levy will not be great, but it will encourage a black market and the transit of medical cannabis through unwanted intermediate stations,” Ridnik’s letter says, in part. “Even if it was correct to impose a floating levy, it had to be across the board on every import whatsoever. Given that this is not the recommendation, imposing a levy only on a specific country is the worst possible way.”

Ridnik says his Ministry of Health will not be able to defend the Ministry of Economy’s decision.

“We, as the professionals responsible for the field, will not be able to support the supervisor’s position or defend her professional logic in court or in any other proceeding,” read part of his letter.

Israel’s Ministry of Health did not respond to a request for comment by the time of this publication.

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