Treasury equalizes tax on local and imported beer

The Ministry of Finance has changed the tax method on domestic beer, equalizing it with imported beer. Prime Minister and acting Minister of Finance Ehud Olmert signed the amendment to the customs rate and purchase tax ordnance. All beer will now be taxed at NIS 1.85 per liter.

The Israel Tax Authority says that the new method establishes fairer competitive terms, and simplified supervision and enforcement of the beer market. The new tax method conforms to the methods employed in most developed countries, including the tariff level. The change in tax method is not expected to affect tax revenues collected on beer, or the price consumers pay.

The Tax Authority is examining changing taxes on hard liquor to be based on the alcohol content rather than the price.

Published by Globes [online], Israel business news - www.globes.co.il - on May 7, 2007