The Minister of Finance, Bezalel Smotrich, published today (Tuesday) for public comments a decree canceling the purchase tax imposed on sugary drinks, which entered into force on January 1, 2022. The tax was imposed in accordance with Government Decision No. 236 of August 1, 2021 on the topic “Promotion of lifestyle healthy”.
Currently, drinks with 5 grams of sugar, per 100 ml or more, are subject to a purchase tax of 1.07 NIS per liter of drink, 6.46 NIS per liter of concentrate, and 6.46 NIS per kg of powder. On drinks with less than 5 grams of sugar per 100 ml, fruit juices and drinks with a sweetener other than sugar – a purchase tax of 0.76 NIS per liter of drink, 4.53 NIS per liter of concentrate and 4.53 NIS per kg of powder is imposed.
As part of the decree published today, it is proposed to abolish the purchase tax on sweet drinks, and this in the expectation that the abolition of the tax will lower the price of the products for the consumer.