New monetary effects? (Illustration)
Photo: Reuters
Deputy Minister Litzman
Photo: Dudi Vaaknin
Deputy health minister wants new tax on cigarettes
MK Litzman bids for NIS 1 tax on every pack of cigarettes, says revenues could reach NIS 300 million which, in turn, could be used to fund anti-smoking campaigns
Deputy Health Minister Yakov Litzman (United Torah Judaism) has introduces a new initiative calling to impose a new tax on cigarettes.
Knesset Member Litzman would like to see smokers pay an additional NIS 1 (about 25 cents) for every pack of cigarettes.
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The deputy health minister sent a memorandum to that effect to Finance Minister Yuval Steinitz, saying that the proposed tax could, in the long run, add more than NIS 300 million ($70.75 million) to the Treasury, which in turn could be diverted to anti-smoking activities.
Litzman would like to see the funds invested in workshops meant to aid those who wish to stop smoking and in anti-smoking campaigns, as well as in ventures meant to cater to the medical needs of the two lowest socioeconomic echelons.
The UTJ MK is not the first to try and impose cigarettes taxation: Former Health Minister Shlomo Benizri (Shas) attempted to tax tobacco imports, which would have driven cigarettes prices up by 20%, but being an earmark tax, the Treasury opposed it, as it traditionally does all earmark taxes.
Sources in the Health Ministry were optimistic as to the proposal's chances to get the Treasury's backing on Sunday, as its premise is meant to generate funds for the State.
