Ministry of Finance will restrict quantity of cigarettes that can be bought in Duty Free
Among sources of funds with which Minister of Finance plans to compensate incomes fall in treasury because of income tax decrease for middle class are specified, in particular, significant limit reduction of cigarettes that can be bought in duty free shops.
Beginning with 2012 in Israel will be allowed to import not 2 cartons of cigarettes as it is now but only one carton but if person wishes to buy more, he will have to pay tax in full while acquiring cigarettes in duty free shop.
At the same time it is marked that Ministry of Finance will not manage to compensate entire billion of shekel that government will not get because of income tax decrease from Israelis who earn from 8000 to 14000 shekel per month only on smokers: this step will bring to treasury only several hundreds millions shekel.
Ministry of Finance already for many years tries to reduce limit of duty free cigarettes acquisition and this year, most likely, it will manage to do this as government has no other sources that could be cut relatively safely.