The Knesset approved increased taxes on sweetened drinks by a vote of 57-56 late Monday night and into early Tuesday.
The new regulation, to go into effect immediately, is meant to improve the health of Israelis.
The tax hike means each liter of sugary drink will cost another shekel (about 32 cents) in taxes, according to Israeli media. Diet drinks with less than 5 grams of sugar per 100 milliliters (3.4 ounces) will be taxed an added 70 agorot (23 cents) per liter.
At the end of November, the Israeli government raised the tax on plastic disposable utensils.
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