Imports of packaged cigarettes have soared in Israel after the country equalized the taxes for rolling tobacco and packaged cigarettes in February, reports Haaretz.
Previously, Israel levied lower taxes on rolling tobacco, prompting many smokers to shun packaged cigarettes and make their own.
In February, Finance Minister Moshe Kahlon signed an order for tax parity between the two categories after the High Court of Justice ruled that since both kinds of tobacco present the same and equal health risks, they should receive the same tax treatment.
The change was immediately apparent in the Israel Tax Authority’s figures for April, which showed that imports of rolled tobacco plunged 58 percent from a year ago while imports of packaged cigarettes climbed 13.3 percent. Anti-smoking activists say that while the tax parity order was partially responsible, tobacco importers also played a role by slashing cigarette prices in recent weeks.
“The quiet discounting of cigarette prices is a cynical act by the tobacco companies, whose goal is to snare rolled tobacco users in their nets and make sure they return to buying cigarettes now that the tax has been equalized,” said Shira Kislev, the CEO of Smoke Free Israel.