כיכר השבת

Israel Ends Duty-Free Tobacco Exemption Starting 2028

Israel's Finance Committee approved new regulations that will eliminate most tax exemptions on tobacco products at duty-free shops beginning in 2028, significantly limiting what travelers can purchase without paying local taxes. Under the new rules, personal exemptions will be capped at 20 cigarettes or tobacco units, 40 grams of tobacco in any form, or electronic cigarettes containing no more than 10 milliliters of liquid. The measure represents a major shift in Israel's duty-free policy and is expected to generate additional tax revenue while potentially discouraging tobacco consumption among travelers. The restrictions will take effect in 2028, giving retailers and travelers time to adjust to the new limitations on tax-free tobacco purchases at Israeli airports and border crossings.