Smotrich boasts of reforms to cheese market, vows to pass state budget

By Sam Sokol 19 January 2026, 4:51 pm

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Sam Sokol is a former political correspondent at The Times of Israel. He was previously a reporter for the Jerusalem Post, Jewish Telegraphic Agency and Haaretz. He is the author of "Putin’s Hybrid War and the Jews"

Finance Minister Bezalel Smotrich leads a Religious Zionism faction meeting at the Knesset in Jerusalem, January 5, 2026. (Yonatan Sindel/Flash90)

Finance Minister Bezalel Smotrich boasts of taking “another significant step in the fight against the cost of living,” telling reporters ahead of his Religious Zionism party’s weekly faction meeting in the Knesset that he has “dramatically expanded the opening of the import market for hard cheeses.”

Arguing that cheese prices are artificially high due to local monopolies, which “have limited the quantity of imports and forced us all to pay dearly,” Smotrich says that his dairy reform will allow Israelis to “pay less for basic products.”

Insisting that “it can be cheap here,” Smotrich says that he is “determined to continue lowering prices, and I will not allow anyone to stop” him.

In a statement sent out while Smotrich is talking, the Finance Ministry says that he had signed an order to increase the duty-free quota for hard cheese by 70 percent, to 19,500 tons.

“The increase in quotas will take effect immediately and will be valid for two years, with the finance minister reserving the authority to extend the order in accordance with market developments,” the ministry says.

Turning to Economy Minister Nir Barkat, a critic of his wider dairy reform, Smotrich calls on him to “put the quotas out to tender tomorrow.”

Turning to the 2026 state budget, Smotrich says that “we are determined to pass it on first reading and then discuss it and pass all the important reforms that are here for economic growth and lowering the cost of living, and to pass it on second and third readings before the end of March.”

“As I understand it, the Haredim also have an interest in this coalition serving its time because they have a clear interest in passing a budget,” he adds, referring to Haredi threats to oppose the budget unless the government first passes a controversial bill exempting yeshiva students from military service.

“This is a good budget that contains a lot of good news for the citizens of Israel, lowering taxes and encouraging growth and deploying infrastructure and lowering the cost of living,” Smotrich adds.