The Knesset Finance Committee gave the green light on Monday to Amendment No. 9 to the Customs and Exemptions Tariff Order, initiating a plan to systematically eliminate the current tax exemption on imported tobacco. The phase-out will unfold over several years, with the exemption completely canceled by June 2028.
Previously, individuals could bring tobacco, cigarettes, and e-cigarette liquids into Israel from abroad without paying import tax. That benefit will now be progressively reduced until it is entirely removed.
The Israel Tax Authority projects that this policy shift will increase revenue significantly, with an estimated NIS 50 million expected in 2027, NIS 70 million the following year, and roughly NIS 100 million annually once the new tax structure is fully in effect.
The decision follows the release of the Ministry of Health’s most recent annual report on smoking, which shows that 20% of Israeli adults smoke — a figure 30% higher than the worldwide average. The report also highlights poor cessation outcomes, with Israel’s quit rate trailing 50% behind the OECD average.
In a related study, the Ministry of Health reported that over half of adolescents who experiment with tobacco begin with e-cigarettes. Use of flavored tobacco products among youth is especially prevalent: 88% have tried flavored shisha, 82% flavored e-cigarettes, and 45% have smoked flavored cigarettes or used flavored rolling tobacco.
In the chareidi community, the numbers are troubling. A new survey showed that 54% of students in ultra-Orthodox high schools and 80% of teens in dropout programs between the ages of 12 and 17 have used some type of smoking product.
Although current law mandates that local governments enforce public smoking bans, oversight remains weak. While 82 municipalities reported enforcement actions in 2024 under the smoking prevention law, over 65% failed to submit the legally required reports, and even those that did showed uneven follow-through.
{Matzav.com Israel}
