On Sunday at midnight, the purchase tax on electronic cigarettes will take effect

On Sunday at midnight, the purchase tax on electronic cigarettes will take effect, the Tax Authority announced today to importers and marketers of cigarettes. Under the new taxation system, the price of e-cigarettes is expected to skyrocket tomorrow, in some cases by hundreds of percent.
For example, if there is no change in the tax rates set in the draft order published for public comment, a 10 ml bottle of filler, priced at NIS 30, will be taxed at NIS 195, and the total price to the consumer will increase to NIS 225, in case the company does not absorb That is, the tax rate on e-cigarettes will be similar to that on regular cigarettes - around 80% of the price per consumer, so a one-time e-cigarette is likely to triple three times. At about NIS 108, so the final price will be about NIS 140.
The taxation order, signed by Finance Minister Avigdor Lieberman, puts an end to the ongoing distortion in the fight against smoking and taxation of smoking products in Israel: Electronic cigarettes are currently sold in Israel without purchase tax, unlike other smoking products - cigarettes, rolling tobacco and Aikos (tobacco heating technology). The result is a huge price gap between e-cigarettes and other smoking products, making them very accessible to teens, who are considered particularly price sensitive.
The move to impose a tax on e-cigarettes has been supported in the past by professionals, the Ministry of Health and the Tax Authority, but it is "stuck" in the offices of previous finance ministers, Moshe Kahlon and Israel Katz, who delayed and did not sign the order. Against the Ministers of Finance and Health, who filed the smoking cessation project a year ago through Adv. Efi Michaeli, demanding that some tax be imposed on e-cigarettes. The hearing in the petition is due to take place next month , As happened to former minister Kahlon in a similar petition of the venture, which dealt with the taxation of rolling tobacco.
A statement from the IRS last week said: "This move follows on from previous moves, which compared the tax on tobacco for heating and rolling tobacco to the tax on regular cigarettes, and reflects the desire for uniform taxation on all tobacco products." It was also written that the aim of the move is "to reduce the consumption of e-cigarettes, which increase the risk of heart disease and respiratory diseases."