Israel Increases Taxes on Smoking Products

On March 3, 2024, Israel's Ministry of Finance announced an increase in taxes on several smoking products within framework of the balancing plan for the 2024.
The key changes include:
1) The tax rate on cigarettes will increase from 270% + 444.03 NIS per thousand cigarettes (with a minimum of 850.62 NIS per thousand cigarettes) to 270% + 524.50 NIS per thousand cigarettes (with a minimum of 930 NIS).
2) The purchase tax on liquid used to fill electronic cigarettes and disposable electronic cigarettes will increase from 145% + 4.80 NIS per ml (with a minimum of 9.20 NIS per ml) to 145% + 5.66 NIS per ml (with a minimum of 10.04 NIS per ml). Beginning in July 2024, the tax on electronic cigarettes will be hiked again to 270% + NIS 10.49 per milliliter.
3) The purchase tax on processed tobacco will rise from 270% + 634.34 NIS per kilogram (with a minimum of 1215.18 NIS) to 270% + 749.29 NIS per kilogram (with a minimum of 1328.57 NIS).