Liquor Taxes Mount, Gasoline Prices Drop
It was Sunday midnight when a new tax regime went into effect. This is where hard liquor may double their prices while gasoline goes down slightly.
This new system for liquor drinks were promulgated since 2010 and meant to go into effect in 2014. This much becomes an advantage to minors who could conveniently afford the liquors; therefore, increasing the revenues of the state.
The regime declares that the stronger the substance present, the higher the liquor tax. It means 75 percent of the retail value with more than NIS 21.28 per liter of alcohol content. In other words, it will charge NIS 105 per liter of alcohol consistently.
This has been a debate for critics and Tax Authority. Critics say if tax would rise, wealthy people would tend to have tax burden while classes below would buy the more expensive ones. Yet, authority speaks that it’s just a way of making the harmful substance less readily available since they are too expensive for many which helps to eliminate the negative externalities.
Reducing gasoline prices by 1.2 percent has been the joy of the public. The price for self-service gasoline fell into NIS 7.43 per liter from the price of NIS 7.52 per liter. While the full-service charge remained stagnant at NIS 0.18 per liter.
The 1.6% drop in the La Vera trade prices for fuels in Mediterranean basin, and the 1.2% appreciation of shekels against dollar during the particular month contributed to the said drop.