The Tax Authority today (Wednesday) reduced the tax burden on e-cigarettes, contrary to the position of the Ministry of Health and the decision of the Finance Committee.
The Tax Authority's order published this morning states that the tax formula on refill liquids and cartridges was reduced by 10% under pressure from e-cigarette importers, who claimed that there was a reduction during the transfer of refill liquid.
The taxation that has already applied to the refill liquid since the Finance Committee hearing on January 31 was 270% and has now been reduced to 243%.
This, as stated, is contrary to the Ministry of Health's recommendation to test smoking products in such a way that the prices of e-cigarettes will be the same as the tax on regular cigarettes.
As you may recall, the tax comparison process lasted over a decade and reached the High Court. Two weeks ago, the move was approved by the Finance Committee, when the Knesset plenum was supposed to vote on approving the order this week. Decided to respond to the importers' requests and tax relief.
Comparison of taxation approved by the Finance Committee, Photo: Adina Velman, Knesset Spokeswoman
The Tax Authority explained the relief: "The new order is intended to reflect the depreciation created during the filling process, when switching between different receptacles. The order was signed amid concerns raised about the alleged repeal of the previous order in the Knesset plenum last Monday. The previous one was not abolished by the Knesset and the tax threshold was maintained in view of the reduction mentioned above, which took effect this morning. "
Shira Kislev, CEO of the smoking cessation project, attacked the new order: “The order expresses further relief to e-cigarette importers and tobacco companies.
There is no reason for the further reduction in tax rates, taking advantage of the non-vote on the order in the Knesset plenum.
The change in the tax formula in relation to some of the e-cigarette products creates concern for a situation where there will be a preference of the smoking public for the cheap product, even though from a health point of view, it is just as dangerous and harmful as the rest of the products.
Equally serious is the fact that the decision of the Tax Authority was made contrary to the professional recommendations of the Ministry of Health and contrary to the official position of the World Health Organization. "
Prof. Hagai Levin: "There is no reduction in the health damage caused to smokers and those who inhale cigarette smoke"
She added: "Every day when the order is not finally signed and approved by the Knesset, exposes the public and especially the youth to smoking and entering the cycle of addiction. .
Prof. Hagai Levin, chairman of the Association of Public Health Physicians, added:
There is no reduction in the health damage caused to smokers and those who inhale cigarette smoke.
It is important that we do not grow a new generation of smokers in Israel, and additional actions are required, such as banning the sale of flavored smoking products, raising the smoking age to 21 and increasing enforcement. "
The tax authority said that "the move is coordinated with the finance committee and the new order will be approved soon."
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