Search
Close this search box.

The Cost of Smoking to the Israeli Economy


The Knesset Health Committee met to discuss the report released by Deputy Minister of Health Yaakov Litzman addressing the cost of smoking to the Israeli economy in 2011.

To the surprise of many, the report states smoking costs the economy 8 billion NIS in 2011 while income generated by cigarette and tobacco tax amounted to 5 billion NIS.

Health Ministry Director-General Dr. Roni Gamzu took part in the session, telling members “I am the enemy to tobacco companies and anyone making a profit from tobacco sales”.

Prof. Gamzu explained that legal experts are studying a proposed bill that would compel cigarette manufacturers to make compensatory payment for treatment of patients diagnosed with cigarette-related illnesses. Officials explain that included in the cost to the economy from smoking includes medical treatment, hospitalization, disability pension payments, and the decline in tax revenue resulting from those afflicted with smoking related illness and are no longer members of the productive workforce.

Senior ministry official Chaim Geva-Hespeil explained that 6 billion cigarette butts are tossed annually, referring to those not placed in an ashtray or garbage receptacle, resulting in 64 children under the age of 6 being “poisoned” by butts they ingested after finding them on the street in 2011.

A major educational project that was to begin in the nation’s public schools to persuade students not to smoke will not happen due to the objections of Minister of Education Gideon Saar who refused to comply with the stipulation that in the 200 schools hosting the programs, school employees must be banned from smoking on school grounds. Prime Minister Binyamin Netanyahu favored the program.

(YWN – Israel Desk, Jerusalem)



5 Responses

  1. They should include the money saved in pension costs. Everyone dies, and if they die at the end of their prime working years, but before collecting a pension, society benefits economically. Killing off people as the approach retirement age is good economics.

  2. Dear Mr. akuperma,

    I beg and plead with you – PLEASE stop posting comments on this site. I have no idea who you are but your comments appear on the vast majority of articles on this site. They are horribly thought out and written. You have an opinion about everything & seem to know everything about everything. Your comments are very narrow-minded and, frankly, sad to read. Everyone has a right to their opinions but I would be deeply indebted to you if you’d keep yours to yourself.

  3. RBS.jew – Once the article starts trying to quantify the economic costs of smoking it’s not offensive for someone to point out that there are also economic benefits to smoking. After seeing a friend of mine last month who is now dying of lung cancer in his 40s I am no fan of smoking.

    But truthfully akuperma is correct in purely economic terms that government save a significant amount of money in pension obligations that it does not have to pay out for smokers who die. Additionally, cigarette taxes bring in billions to the government and there are many jobs that are around due to cigarette sales.

    The argument against smoking is a moral one, not an economic one.

  4. Akuperma, I’m sorry to say but I have to agree with RBS.Jew.
    You have too much time on your hands and hence too many opinions about matters that you surely can’t know so much about.

    My advice to you is simply to get a life!

Leave a Reply


Popular Posts