Philip Morris raises cigarette prices in Israel


A pack of cigarettes will cost NIS 1 more and a packet of loose tobacco NIS 2 more.

"We have raised prices for a number of brands in our portfolio for commercial reasons," tobacco company Philip Morris today confirmed. The company notified retailers that prices for most of its cigarette and loose tobacco brands would be raised today by NIS 1 for a packet of cigarettes and NIS 2 for loose tobacco.

Philip Morris has a 58% market share of tobacco brands' activity in Israel in 2017, followed by Globrands with a 31.5% share and Dubek with 10.4%. 

The division of the market for loose tobacco, a category that has become more popular over the years, is different. Dubek leads with a 39% market share, Philip Morris is second with a 33% share, and Globrands has 27.5%. 760 tons of loose tobacco were sold in 2017.

The state collects NIS 6 billion annually in excise tax on cigarettes, a tax that accounts for over 80% of the price of cigarettes: 65.5% excise tax and 17% VAT.

As in previous years, it can be assumed that Philip Morris's announcement will be followed by price hikes by other cigarette companies. It should be noted that the prices are determined at the sales points, and are not uniform. After the price revisions are made, a packet of Marlboro cigarettes will cost at least NIS 35 and a packet of Parliament cigarettes at least NIS 38. Loose tobacco will cost NIS 46 instead of NIS 44.

A law was passed in December 2017 banning advertisements of cigarettes and tobacco products.

Published by Globes [online], Israel Business News - - on March 4, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

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