In a surprise move last night, Minister of Finance Yuval Steinitz signed an amendment to the excise and purchase tax order, which immediately raises taxes on cigarettes and beer. A 10% tax is also being imposed on stocks of cigarettes already held by businesses. The new taxes will earn the government extra annual revenues of between NIS 700 million and NIS 1 billion. Under the terms of the order, tax rates on cigarettes will rise from 260.6% to 278.6%. The expected influence of the tax will be to add NIS 2.4-2.9 per pack of cigarettes.
