ISRAEL
Cigarette imports on the rise

Imports of packaged cigarettes in Israel have risen rapidly after taxes on both rolling tobacco and packaged cigarettes were equalised in February, Haaretz reported.

Israel had levied a much lower tax on rolling tobacco, which had led many smokers to avoid packaged cigarettes and make their own, the report said. In February, Finance Minister Moshe Kahlon signed a resolution on tax parity between the two categories after the High Court of Justice ruled that both types of tobacco, as they pose the same and equal health risks, should receive the same tax treatment.
According to the report, the change was immediately reflected in the Israeli tax authorities' April figures, which showed that imports of rolled tobacco fell 58 per cent year-on-year, while imports of packaged cigarettes rose 13.3 per cent.
Anti-smoking activists say the tax parity order was partly responsible, but tobacco importers have also played a role by lowering cigarette prices in recent weeks. “The quiet discounting of cigarette prices is a cynical act by the tobacco companies, whose goal is to snare rolled tobacco users in their nets and make sure they return to buying cigarettes now that the tax has been equalized,” Shira Kislev, the CEO of Smoke Free Israel, was quoted as saying.

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