If there’s no arak, let them drink cognac
The Finance Ministry said it will seek ways to re-examine alcohol prices, following an outcry over its decision to raise alcohol taxes six months earlier and higher than planned.
On 1 July 2013 many popular spirits, such as arak and vodka, saw price increases of 100 percent or more per bottle. For example,
1. Perfect Vodka Classic – was NIS 40 and is now NIS 104;
2. Elite Arak – was NIS 37.50 and is now NIS 81.50;
3. Azim Arak – was NIS 30 and is now NIS 60.
Incidentally, imported whiskies and cognacs became cheaper.
Johnny Walker Gold was NIS 955 and is now NIS 692, Remy Martin XO was NIS 1,871 and is now NIS 1,142 (NIS 100 = USD 28 / EUR 22).
The thinking behind the change in the alcohol excise regime was to tax products with a higher alcohol content at higher rates; another reason was to limit the “social damage” caused by alcohol – a reference to youth drinking.
Israeli media commented that for those who can afford big name imports, boozing will become less expensive, but for the poor guy, drinking arak “a l’chaim” will be a thing of the past.
Retailers, ever practical, helped consumers to stock up on booze before the dreaded price hike. In the run-up to 1 July, neighbourhood convenience stores had cleared the shelves of non-alcoholic beverages and re-stocked them with booze bottles, due to popular demand.
Despite the public uproar, the price hike will not affect the average Israeli all that much. Per capita consumption of alcohol is very low. But it will hurt bars and restaurant sales. Already, food and drinks at major bars and clubs in Israel are no different in price to the best haunts in London.
