Israel Boosts Alcohol Tax

Effective July 1, the new tax rate will increase from $23 to $28.50 per liter.

June 06, 2013

JERUSALEM – Israeli Finance Minister Yair Lapid signed a decree earlier this week that increases the tax on alcoholic drinks in the country by 25%, the New York Daily News reports.

Beginning July 1, the tax on alcoholic beverages increases to $28.50 per liter, up from the current $23 per liter. The start date is five months earlier than originally announced. 

The Israeli government expects that the increased tax will generate about $54 million in additional revenue for the country.

Ofer Ronen, co-owner of the Srigim Brewery outside Jerusalem, said that his business has been feeling the pinch from high taxes and that the new tax is likely to force him out of business. “All of our business planning was based on the previous tax,” he said.

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