Israel Raises Tobacco Tax to Reduce Budget Deficit from March 4

Regulations by 2FIRSTS.ai
Mar.04.2024
Israel Raises Tobacco Tax to Reduce Budget Deficit from March 4
Israeli Finance Minister Bezalel Smotrich signed a law to increase tobacco sales tax, leading to price hikes starting March 4.

According to Newsru, on the evening of March 3rd, Israeli Finance Minister Besalil Smosty signed a decree to increase the sales tax on tobacco products. The signing of this decree means that starting from March 4th, the prices of Israeli tobacco, cigarettes, and e-cigarette liquids will all increase.

 

The specific plan for this price adjustment includes: a 2 shekel (0.56 USD) increase in the price of each pack of cigarettes, a 0.13 shekel (0.036 USD) increase in the price per gram of tobacco, and a 1 shekel (0.28 USD) increase in the price per milliliter of e-cigarette liquid.

 

This measure is expected to bring in approximately 400 million shekels ($112,146,912.4) to the Israeli treasury, helping to reduce the budget deficit. While the cigarette tax adjustment will directly burden smokers, some experts believe that it will benefit the government in strengthening its regulation of tobacco products and possibly encouraging the public to reduce smoking, leading to healthier lifestyle choices.

 

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