Israel has raised the price of tobacco products with a tax hike signed by Finance Minister Bezalel Smotrich. The increase in the sales tax on smoking products came into effect on 3 March, reports Jewish Press.
The tax increase on tobacco products, approved by the Knesset Finance Committee, is part of the government’s decision to “prevent smoking and promote a healthy lifestyle.”
The increase means the sales tax on cigarettes will rise from 270 per cent and a price of NIS 444.03 (USD 124) per thousand cigarettes up to NIS 850.62 (USD 238) per thousand cigarettes, to 270 per cent and NIS 524.50 (USD 146) per thousand cigarettes up not less than NIS 930 (USD 260) per thousand cigarettes.
The purchase tax on processed tobacco will increase from 270 per cent and NIS 634.34 (USD 177) per kg up to NIS 1,215.18 (USD 340) per kg, to 270 per cent and NIS 749.29 (USD 209) per kg up to NIS 1,328.57 (USD 371) per kg. The purchase tax on liquid for e-cigarettes will also be increased. A tax of NIS 113.39 (USD 32) per kg will be levied on packages of loose tobacco.
According to a July 2023 report by the Israeli Health Ministry, 27.3 per cent of men in Israel and 12.6 percent of women in Israel smoke.