A tax on hard drinks approved sometime ago but not implemented is soon to become a reality in Israel, being pushed ahead by several homicides and violent crimes linked to alcohol consumption.
A 50% tax is being levied on locally manufactured vodka, and a NIS 17 bottle will jump to NIS 26. Ironically, more expensive imports will drop in price ranging from 25%-40%.
Lawmakers are hopeful the sharp increase in local vodka will result in a drop in sales among the young population ranging from 20%-30%.
While the new law is expected to impact many other drinks in the future, importers, duty free shops and stores are expected to appeal the planned tax in the courts.
(Yechiel Spira – YWN Israel)