Israel is enacting a high hike in tobacco taxes to try and lower smoking rates to encourage healthier living standards. This new policy, signed into effect by the Minister of Finance for Israel on Sunday, will take effect at midnight between Sunday and Monday.
The government said the tax hikes attempt to combat smoking and promote public health. The changes have been agreed upon by the Knesset Finance Committee, underlining legislative support for the proposed measures. The increased taxes reflect a bigger campaign in an attempt to deter smoking and the resultant health risks.
Cigarette Tax Increase
There is going to be quite a hike in cigarette taxes. Currently, it stands at 270 percent plus 444.03 Shekels per thousand cigarettes- around USD 122-minimum tax of 850.62 Shekels per thousand cigarettes, approximately USD 235. Under the new regulations, it will rise to 270 percent plus 524.50 Shekels per thousand cigarettes, about USD 145, and a minimum of 930 Shekels per thousand cigarettes, approximately USD 258. This adjustment is meant to raise the cost of smoking and make it less appealing; this will cut down the rate of consumption.
Changes in Processed Tobacco Tax
The tax on processed tobacco will also increase. This used to be 270% plus 634.34 Shekels-about USD 175- per kg, with a minimal tax of 1215.18 Shekels, approximately USD 335, per kg. The new duties of 270% plus 749.29 Shekels-app. USD 205 per kg-, with a minimum tax of 1,328.57 Shekels, app. USD 365 per kilogram of finished goods.
This hike is also meant to see a shift from using processed tobacco, mainly used in homemade smoking products.
E-cigarettes and Liquids
E-cigarettes and their refill liquids will also raise their taxes. The current tax applied to liquid e-cigarettes and disposable e-cigarettes is 145 percent. In addition to 4.80 Shekels – approximately USD 1.32 per milliliter, but at least 9.20 Shekels (approximately USD 2.50) per milliliter. The new tax will reach 145 percent in addition to 5.66 Shekels – approximately USD 1.55 per milliliter. But at least 10.04 Shekels (approximately USD 2.70) per milliliter. From July 1st, the tax rises again to 270% plus 10.49 Shekels – about USD 2.90 – per ml, the minimum price of 18.60 Shekels – approximately USD 5.10 – per ml.
Other Tobacco Products
The new regulations also address raw tobacco and several other tobacco products. Raw tobacco and cigarette tobacco will be subject to a tax of 113.39 Shekels – approximately USD 32 per kilogram. Cigarettes and tobacco units will face a tax of 5 percent of their consumer price, excluding value-added tax, starting the day before the decree takes effect. E-cigarette liquids and disposable e-cigarettes will face a tax of 0.84 Shekels per milliliter.
Purpose and Expected Impact
The new taxes are part of a general Israeli policy of discouraging smoking and promoting public health. Higher prices for tobacco products will discourage smoking, particularly among younger people, who are most sensitive to increases in the price of tobacco. The tax increases are intended to cut the rate of smoking. And reduce the incidence of heart disease, cancer, and other respiratory ailments associated with smoking.
These taxes will take effect immediately, and consumers will also see tobacco prices rise over the next few months. The government feels this financial disincentive will cause a slump in smoking rates. And become a contributory factor to the overall public health improvement.
In short, increasing the tobacco tax is a step toward taking responsibility in consideration of public health concerns by Israel. The government is increasing the price to reduce smoking and give rise to a healthy society. Therefore, these new tax rates take countries closer to reaching goals at many points concerning health.
ANI