Study Reveals Lasting Impact of Lieberman’s Sweet Drink Tax on Prices and Consumption
How 4 Israeli newsrooms covered this story — translated into English and compared side by side.
First reported by Now 14 · 3 hours ago
What happened
A study by the Israeli Tax Authority reveals that the sweetened beverage tax introduced under Finance Minister Lieberman led to higher prices and reduced consumption, effects that partially persisted after the tax was repealed. Companies raised prices beyond the tax amount and did not fully lower them after repeal, while consumption dropped by 12% during the tax and rose by 5% after. The tax generated significant government revenue, with projections showing increased income if it had continued.
- 01Sweetened beverage tax raised prices beyond the tax amount, boosting company profits.
- 02Consumption of sugary drinks dropped 12% during the tax and rose 5% after repeal, not returning to prior levels.
- 03After tax repeal, prices fell less than the tax amount, indicating incomplete pass-through to consumers.
- 04Tax had a stronger consumption impact on the ultra-Orthodox sector than the general population.
- 05Tax generated 900 million shekels in 2022; projected 1.05 billion shekels revenue if maintained through 2025.
- 06Tax rates included 1 shekel per liter for sweet drinks and 6 shekels per liter/kilogram for concentrates and powders.
Summary translated & synthesized from the sources below by baba. Read each original for the full report.
Full coverage · 4 outlets
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