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Vodka (illustration)
Photo: Tzvika Tishler

Local alcohol prices to rise

Finance Ministry plans to raise tax on vodka made in Israel by 50% in bid to reduce drunkenness among youngsters; prices of imported beverages, however, will drop 40%

The violence ranging on Israel's streets is expected to lead in the coming days to an economic move, which was planned many months ago but has yet to be implemented: The Finance Ministry will raise the tax on locally produced vodka, whose price will increase from NIS 17 (about $4.5) to NIS 26 ($6.8).

 

However the prices of imported alcoholic drinks, which cost hundreds of shekels per bottle, will be reduced by 25-40%.

 

This combined move is aimed at preventing a rise in the tax load on alcoholic drinks, but making it difficult for young people, who consume local vodka for very cheap prices, to buy the bottles. A 50% price hike is expected to lead to a 20-30% drop in the purchase of vodka made in Israel.

 

The taxation reform on alcoholic beverages is expected to include other drinks as well in the future, although manufacturers, importers and duty free stores plan to appeal against some parts of the reform.

 

The previous government had planned a taxation reform on alcoholic drinks, but the move was removed from the Arrangements Act at the last minute and is expected to be implemented now.

 


פרסום ראשון: 08.26.09, 17:03
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