Market and regulatory data for the vapour sector in Israel

3rd July 2024: Israel: A new tax rate on e-liquids and disposable e-cigarettes has entered into force, imposing an excise duty of 270% of the wholesale price, plus ILS10.49 ($2.78) per ml, up to a total limit of ILS18.60 ($4.94) per ml.
2nd April 2024: Israel: The Tax Authority conducted a nationwide operation inspecting e-cig retailers to establish deterrence in the industry and ensure the payment of purchase tax and VAT applicable to these products. The authority said that it found evidence of tax evasion of tens of millions of shekels.
27th March 2024: Israel: Yesterday (26th March), the Knesset (parliament) approved a bill amending the Law on the Prohibition of Advertising and Restriction of Marketing of Tobacco and Smoking Products (Tobacco Law). Under the new amendments, a pictorial health warning must be affixed on e-cigarette packaging. The amendment did not specify the timeframe for adopting these measures or the format of the warning, but it stipulates that the Ministry of Health, with the Knesset’s Economic Committee, have the authority to determine warning size, content, types of images, and display methods.
21st March 2024: Israel: The Economic Committee has approved the second and third readings of a bill amending the Law on the Prohibition of Advertising and Restriction of Marketing of Tobacco and Smoking Products (Tobacco Law). The bill now heads to the Knesset (parliament) plenary for discussion. If approved by the Knesset, a pictorial warning on e-cigarette packaging will be required.
14th March 2024: Israel: In its plenary session, the Knesset (parliament) approved the final reading of the 2024 budget bill presented by the Ministry of Finance. The bill sets excise duty on e-liquids and disposable e-cigarettes in two stages. In the first stage, tax rates are set at 145% of the wholesale price plus ILS5.66 ($1.56) per ml, up to a total limit of ILS10.04 ($2.76) per ml. In the second stage, from 1st July, the tax will rise to 270% of the wholesale price, plus ILS10.49 ($2.88) per ml, up to a total limit of ILS18.60 ($5.12) per ml.
6th March 2024: Israel: The Tax Authority reported that it thwarted a smuggling attempt involving 33,000 e-cigarettes, worth approximately ILS17m ($4.7m) in unpaid taxes.
4th March 2024: Israel: As part of the 2024 budget plan, yesterday (3rd March) the tax authority announced an increase in the excise duty on e-liquids and disposable e-cigarettes, with tax hikes in two stages. In the first stage, from today (4th March) new rates are set at 145% of the wholesale price plus ILS5.66 ($1.59) per ml, up to a total limit of ILS10.04 ($2.82) per ml. In the second stage, from 1st July, the tax will rise to 270% of the wholesale price, plus ILS10.49 ($2.94) per ml, up to a total limit of ILS18.60 ($5.22) per ml. The duty was previously 145% of the wholesale price, plus ILS4.80 ($1.35) per ml, up to a total limit of ILS9.20 ($2.58) per ml.
15th February 2024: Israel: Tomorrow, 16th February, the Knesset (parliament) Finance Committee will discuss the 2024 budget plan presented by the Ministry of Finance. According to press reports, a representative for finance minister Bezalel Smotrich indicated that Smotrich no longer opposes making e-cig taxes the same as those on combustible cigarettes. This means that e-cigarettes could be taxed at a rate of 270% of the common wholesale price, instead of the current 145%.
12th February 2024: Israel: The Knesset Economic Committee has approved the first reading of a bill amending the law on "banning advertisements and restricting the marketing of tobacco products". The bill was submitted originally by Osher Shekalim (Likud) and proposed the inclusion of pictorial warnings on all tobacco products, including heated tobacco and electronic cigarettes. The proposal will now proceed to the plenary session of the Knesset for further debate.
5th February 2024: Israel: Tomorrow (6th February), the Knesset Economic Committee will meet to discuss a bill that would place further advertising and packaging restrictions on tobacco products. The bill was submitted in July 2023 and proposes the inclusion of pictorial warnings on all tobacco products, and grants the Ministry of Health – with the Knesset Economic Committee's approval – authority to determine warning size, content, types of images, and display methods.
18th January 2024: Israel: Finance minister Belazel Smotrich has amended the 2024 budget plan and removed the section concerning a tax increase for e-cigarettes, press reports. The duty, which is currently 145% of the wholesale price plus ILS4.64 ($1.22) per ml, up to a total limit of ILS8.90 ($2.35) per ml, will remain unchanged.
12th January 2024: Israel: The Finance Ministry has submitted its 2024 budget plan to the cabinet. The plan outlines revenue-increasing measures to address a projected deficit following the ongoing war, according to press reports. The Finance Ministry intends to raise taxes on electronic cigarettes to 182% of the wholesale price plus ILS6.30 ($1.70), with a minimum of ILS11.10 ($3) per ml. The duty is currently 145% of the wholesale price plus ILS4.64 ($1.25) per ml, up to a total limit of ILS8.90 ($2.40) per ml. The government will meet next Thursday (18th January) for the first discussion of the proposal.

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