Finance Minister Bezalel Smotrich has published drafts of orders to permanently cancel the taxes for sugary drinks and disposable dishes.
Smotrich paused the taxes, which were widely seen as targeting the haredi community, upon taking office. Now, the taxes are expected to be canceled permanently. The loss to the public purse is expected to amount to 1.5 billion NIS annually: 1.1 billion NIS from the taxation of sugary drinks, and 400 million NIS from the taxation of disposables.
Ynet noted that although the taxes were unpopular at the time they were enacted, the use of disposables and the consumption of sugary drinks both dropped after the prices rose.
Data shows that between April 2023, after the taxes were first canceled, and March 2024, there has been a rise in the consumption of sugary drinks in comparison to the same period during the previous year, when a drop was seen following the implementation of the tax.
Last week, an appeal was filed against Smotrich, contesting his decision to cancel the taxes. Smotrich replied, "Taxes are not intended to educate people," and explained that these particular taxes were enacted in order to do exactly that. He stressed that in his worldview, which includes a free market and economy, it is important to preserve consumers' choices and reduce to a minimum the government's interference in the open market. The court accepted his response and rejected the appeal.