Israel scraps tax on sugary drinks, sparking health concerns
Smotrich says he signed the directive to scrap the tax because it would be a 'significant reduction in the public’s shopping basket' expenses
Israel’s far-right Finance Minister Bezalel Smotrich on Tuesday canceled a recently imposed tax on sweetened beverages in a bid to reduce household expenses, sparking concern among health experts.
In a statement, Smotrich said he signed the directive to scrap the tax because it would be a “significant reduction in the public’s shopping basket” expenses ahead of the Passover holiday and was “part of the battle against the high cost of living.”
The tax has been in place since early last year, introduced by the administration of then-prime minister Naftali Bennett. It imposed a 28-cent tariff per liter of beverage containing over five grams of sugar for every 100 milliliters of liquid.
Removal of the tax was a key demand of the ultra-Orthodox parties in Israel’s current Prime Minister Benjamin Netanyahu’s coalition, which claims that it unfairly targeted their communities for whom sweetened drinks are a popular accompaniment at holidays and gatherings.
Aryeh Deri, chairman of the ultra-Orthodox Shas party, applauded the decision, calling the original tax a "political" measure targeting "underprivileged segments of society," but Israel’s doctors’ union slammed it as “irresponsible” and damaging to public health.
Hagai Levine, chairman of the Israel Association of Public Health Physicians, said canceling the tax was "medically, financially, socially, and publicly irresponsible.”
It is "a huge gift" to soft-drink manufacturers at the public's expense, Hagai tweeted, encouraging people to drink water instead.
Smotrich countered warnings of the health impact by saying he ordered a team to work with the Health Ministry "to examine ways to encourage the consumption of healthy food and reduce sugar consumption.”