The Knesset Finance Committee on Monday, discussed calls to increase taxes on imported tobacco and cigarettes from airport duty free shops. The issue was raised for a second time this month, and once again, committee members exhibited hesitation, with committee chair MK Moshe Gafne explaining he does not wish to make changes until hearing from all the involved parties. This includes health experts, to ascertain if they feel such a move will contribute to minimizing smoking in Israel; duty free representatives; and others involved.

The suggest change would limit travelers to one carton instead of today’s limit of two and the tax break would be diminished, making the duty free option a less attractive one. This would also impact tobacco for water pipes and other tobacco related items.

Committee member MK (Kadima) Shai Hermesh feels that amending the duty free cigarettes would result in significant damage, which he is confident “Would outweigh the benefits of such a move”. He explains that profits earned by duty free shops play a major role in funding the airport so cutting these profits will have a most unwanted impact on the airport’s operations. He feels that the move will not cut smoking in Israel, but it will send travelers to duty free shops in other countries for their cigarette purchase.

Gafne plans to hear from all the involved parties, including tax officials, the Airport Authority and those mentioned above, permitting the committee to then reach a decision based on all the facts.

(YWN – Israel Desk, Jerusalem)