Knesset Finance Committee approves gradual repeal of tax exemption on tobacco products brought into Israel from abroad; move is expected to generate over 100 million shekels annually.
The Knesset Finance Committee on Monday approved today Amendment No. 9 to the Customs and Exemptions Tariff Order, under which the tax exemption on importing tobacco products into Israel will be gradually phased out until its complete removal in June 2028.
The exemption had previously applied to the import of tobacco, cigarettes, and e-cigarette liquids from abroad.
According to estimates by the Israel Tax Authority, the order is expected to generate approximately NIS 50 million in 2027, NIS 70 million in 2028, and around NIS 100 million annually thereafter, once fully implemented.
Earlier this month, the Ministry of Health’s latest annual smoking report revealed that one in five Israeli adults smokes — a rate 30% higher than the global average — while efforts to quit lag significantly, with cessation rates 50% lower than the OECD average.
A separate Ministry of Health survey found that 53% of teens experimenting with tobacco products first try electronic cigarettes. Use of flavored smoking products is widespread: 88% of teens use flavored shisha, 82% flavored e-cigarettes, and 45% flavored cigarettes or rolling tobacco.
Among haredi youth, a new survey found that 54% of students in ultra-Orthodox high schools, and 80% of youth in dropout programs aged 12-17, have tried smoking products.
Despite laws requiring municipalities to enforce bans on smoking in public spaces, compliance remains low. While 82 local authorities reported activities under the smoking prevention law in 2024, more than 65% did not submit required reports, and enforcement remains inconsistent even among those who did.
