Finance minister lowers taxes on hundreds of consumer goods
Reduction in customs duties covers foodstuffs and home appliances, meant to help public with high cost of living
Finance Minister Yuval Steinitz signed on Wednesday a regulation that will reduce or abolish customs duties and sales tax on a range of consumer products including foodstuffs, home appliances and textiles. The tax cuts are designed to help the public cope with the high cost of living in Israel, and to vitalize the economy.
The measure is a followup to a previous reduction in January 2012 of NIS 387 million on taxes for goods produced overseas.
The order signed by Steinitz Wednesday eliminated customs ranging from 8 to 12 percent on popular consumer-oriented products.
The abolition of the tax will take effect immediately and will apply to vacuum cleaners, microwaves, fans, hair dryers, toasters, electric blankets, electric toothbrushes, coffeemakers, irons, toasters, headphones, lamps, glasses, sunglasses, goggles, batteries and more.
In addition, the finance minister canceled the sales tax on entertainment-related electronics goods, effective October 1, 2012. Today, there is a 15 percent sales tax on imported television sets, stereo systems, video projectors and DVD players.
Also, as of January 1, 2013, Steinitz’s move will abolish customs on ready-made textile products with the exception of lingerie apparel, and tariffs on industrial products will be reduced by 15 percent.
The measure is an implementation of the recommendations of the Trajtenberg Committee, set up by Prime Minister Benjamin Netanyahu in 2011 following a summer of cost-of-living protests in order to examine and propose solutions to Israel’s socioeconomic problems.
The Times of Israel Community.