Tax Authority in Israel Cracks Down on Tax Evasion in the Electronic Cigarette Industry

In a recent nationwide operation, the Tax Authority in Israel carried out a comprehensive crackdown on tax evasion related to electronic cigarettes. The focus of the operation was to ensure the proper collection of taxes on electronic cigarettes, specifically targeting shops that sell these products and investigating importers and manufacturers within the industry. The authority's efforts revealed evidence of substantial tax evasion amounting to tens of millions of Shekels.

During the audit operation, various discrepancies and suspicious activities were uncovered, including the sale of electronic cigarettes without paying the required purchase tax. The investigation highlighted instances of importing tax-exempt materials to assemble smoking liquids, leading to significant revenue loss for the government. The authority seized smoking liquid packages without proper labels, rolls of labels written in English instead of Hebrew, and bottles containing liquid components without appropriate taxation documentation.

The Tax Authority underlined the importance of this enforcement activity as a preliminary step to deter tax evasion in the electronic cigarette sector. Further inspections are planned to target other industry players, aiming to establish compliance with the purchase tax and value-added tax regulations. By cracking down on tax evasion in this industry, the authority seeks to ensure fair taxation practices and prevent revenue losses for the government.