Oy Vey! Israel Raises Its Cigarette Tax

Israel's treasury calculates that its new cigarette tax hike should increase its revenues by NIS 700 million ($175 million U.S.) a year.

July 08, 2010

TEL AVIV, ISRAEL - Israelis began paying up to NIS 2.00 ($0.50 US) more per cigarette pack earlier this week, as Israel??s Finance Ministry sought ways to plug a projected budget deficit, Haaretz reports.

With the new increase, the minimum tax per pack in Israel has been set at NIS 9.50, or roughly $2.38 U.S. The treasury estimates that the tax hike will generate an additional NIS 700 million ($175 million U.S.) a year.

While the increase took effect immediately, Israel??s Knesset Finance Committee will vote on the order within the next couple of months. Haaretz also reported that a gasoline tax increase is expected in the near future.

Advertisement
Advertisement
Advertisement