By Aaron Priel

Israel's Ministry of Finance has changed the tax method on domestic beer, equalising it with imported beer.

Prime Minister and acting Minister of Finance Ehud Olmert signed the amendment to the customs rate and purchase tax ordnance, and all beer will now be taxed at NIS1.85 (US$0.46) per litre.

The Israel Tax Authority says that the new system establishes fairer competitive terms, and increases the supervision of the beer market.

The change in the tax system is not expected to affect tax revenues collected on beer, or the price consumers pay for the product. The Tax Authority is currently examining changing the taxes on hard liquor to be based on the alcohol content rather than on the price.