Finance Minister Moshe Kahlon has reduced taxes on alcoholic beverages. The tax on beer will be cut by 46% and taxes on other alcoholic beverages cut by 21%. By signing the order Kahlon eliminated the increase in taxes placed on these items in 2012 and 2013.

Kahlon explained this step follows an earlier decision he made, cutting value added tax by one percent from 18% to 17%, citing this is part of his policy to reduce the taxation on Israelis where possible. The new regulation takes effect immediately.

The decision will result in a reduction of NIS 250 million annually in state tax revenue however officials expect to recover this by stepping up enforcement and cracking down on pirated alcoholic products.

(YWN – Israel Desk, Jerusalem)