The prices of cigarettes, cigars and tobacco were set to increase by 10
percent at midnight on Tuesday, after Finance Minister Yair Lapid signed
a special decree on Tuesday night.
The cost of a packet of
cigarettes was to rise by 2-3 shekels (NIS), and the tax on cigars was
to rise from 75% to 90%. The move was expected to put an additional 800
million NIS into the state's coffers.
Additionally, Lapid decided that the minimum tax on a packet of
cigarettes will rise from 12 NIS to 15 NIS, and from 75% to 90% on
cigars. The Finance Committee will have to approve the price hikes
retroactively in two months time, however the decision will take effect
on Tuesday night.