The Knesset’s Finance Committee on Tuesday approved the order imposing a tax on sugary and sugary drinks. The order, signed by the Minister of Finance Avigdor Lieberman Last October, it will take effect on January 1, 2022. The order imposes on drinks with 5 mg of sugar per 100 ml and above a purchase tax of NIS 1 per liter of beverage, NIS 6 per liter of concentrate, and NIS 6 per kg of powder. Beverages with less than 5 mg of sugar per 100 ml, fruit juices and beverages with a non-sugar sweetener will be subject to a purchase tax of NIS 0.7 per liter of beverage, NIS 4.2 per liter of concentrate and NIS 4.2 per kg of powder.
In addition, the order includes a tax on inventories held by merchants in excess of NIS 10,000 in tax. According to the committee’s decision today, grape juice and lemon juice with a sugar content of less than 5 mg per 100 ml were excluded from the order. The decision is expected to increase state tax revenues by NIS 380 million a year.
The imposition of a tax on sugary and sugary drinks is intended to help combat the phenomenon of obesity, which has worsened in recent years, causing a heavy burden on health services and harming public health. According to the Ministry of Health, sugary and sugary drinks are responsible for 30% -40% of the added sugar consumption (which is not found in food naturally), and studies show that taxing these drinks may reduce their consumption and significantly improve public health in the long run. In a decision to regulate the consumption of these beverages, Israel joins a number of other countries, including Finland, the United Kingdom, Mexico, Hungary and France.
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