Israel's Smoking Problem: The Shift towards E-Cigarettes

It seems that Israelis can't quit smoking. According to the Ministry of Health, the percentage of smokers in Israel has remained at 20% for many years, despite a steady increase in population. This means that the number of smokers in Israel is rising in proportion to the country's population.

It seems odd that, while many other developed countries around the world are turning to more innovative tobacco consumption methods, Israel still relies heavily on combustible cigarettes. Despite being known for its innovative solutions to a wide range of issues, why is Israel so far behind other developed countries in reducing smoking?

According to the global tobacco product manufacturer and leading cigarette supplier in Israel, Philip Morris International, the answer lies in taxation.

From a business standpoint, PMI aims to make profits, but the company has recognized ominous signs that electronic cigarettes seem to be the primary way of tobacco consumption in the future. PMI's objective is to stay ahead in this shift and has announced ambitions to have smoke-free products contribute to more than 50% of its total net revenue by 2025.

A few years ago, Philip Morris decided to undergo a dramatic and potentially historic change in regards to a global tobacco company. "Our vision for a smoke-free future could impact over 1 billion adult smokers worldwide," said Roi Amit, the general manager of PMI Israel. "PMI has made it clear that if you don't smoke, don't start. If you do smoke, quit. If you won't quit, then switch. Our goal is to develop advanced technology based on scientific research that minimizes the impact of traditional cigarettes (which rely on burning tobacco) and offers it as an alternative for adult smokers who aren't able to quit. Today, the company's resources are largely focused on realizing this vision.

PMI has made it clear that if you don't smoke, don't start. If you do smoke, quit. If you won't give it up, then change. The company's objective is to develop advanced alternatives based on scientific research in order to reduce the impact of traditional combustible cigarettes as much as possible and offer them as an alternative for adult smokers who cannot or will not quit. Currently, the majority of the company's resources are devoted to achieving this vision.

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All tobacco use is harmful, but smoke is the worst part.

However, electronic cigarettes with nicotine are also harmful to you. Based on experience, they are detrimental to your health.

While smoking is harmful, electronic cigarettes may have some marginal advantages as they can lower the risk of nicotine poisoning and exposure to harmful chemicals through inhalation for both the user and those around them, according to some studies. PMI hopes that smokers will switch to e-cigarettes if they are already smoking.

An independent study conducted by the UK government's public health agency, Public Health England, and the Royal College of Physicians advisory committee on tobacco shows that vaping is 95% healthier than smoking. However, other experts claim that e-cigarettes are just as dangerous as traditional smoking.

During an interview with the Jerusalem Post, Amit and several other PMI executives admitted that smoking is not healthy.

But when asked if PMI has considered completely stopping cigarette production - given how aware they are of the significant dangers of cigarettes - they stated that if they were to immediately cease cigarette production, one of the other leading cigarette brands in the market would quickly fill the gap.

They do not want this situation to occur and instead, they aim to use their market share to their advantage and gradually encourage people to move away from cigarettes, whether produced by them or anyone else, and turn to electronic cigarette products, preferably theirs. However, they first need to address a major obstacle hindering their progress: Israeli regulatory agencies.

Philip Morris International (PMI) is reportedly putting pressure on Israeli regulators to change their strict stance on taxing e-cigarettes. PMI argues that this is one of the main reasons why smoking rates in Israel have remained unchanged, despite the global trend towards decreasing tobacco use.

Situation of Electronic Cigarette Tax

In Japan, as of 2020, the overall tax on combustible cigarettes is 61 percent; the tax rate on heated tobacco products (HTP) is 52.14 percent. The 19 percent difference in tobacco and HTP taxes has played a significant role in prompting over 22 percent of adult male smokers to turn to less healthy options.

Similarly, in Denmark (where support for HTP stands at 154%), the UK (73%), Germany (123%), Italy (107%), and other countries, the number of smokers has declined in line with more favorable taxation for heated tobacco products.

As previously mentioned, the percentage of smokers in Israel has remained consistent (resulting in an increase in the number of smokers with population growth). Why is this the case?

Israel is the only country out of 39 OECD nations that imposes a tax rate on heated tobacco products (HTP) six percent higher than combustible cigarettes. This unique position among these countries provides a strong argument for PMI's case.

To succeed on the journey towards a smoke-free world, many things need to be done, and in other countries, these things are happening; but in Israel, they are not," Amit said. In this sense, he noted, "Israel has failed in areas where other countries have succeeded.

I don't blame the Ministry of Health. They have tried, but what I mean is that we should do more. To accelerate progress, public health agencies should partner with the tobacco industry to advance the concept of reducing tobacco harm in Israel. Combining higher safety standards, stricter enforcement, and prevention of sales to young people and adolescents - as is the strategy in other countries - regulators are called upon here to develop a local strategy for smoking products based on reducing harm caused by combustibles, and encourage alternatives to those who cannot quit smoking.

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