Por2port News Service
Jul 20, 2012
The order signed eliminated customs duties ranging from 8% to 12% on popular consumer-oriented products
Finance Minister Yuval Steinitz signed an order that reduced or abolished customs duties and purchase 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 order reduced customs duties and purchase tax on hundreds of consumer products up to 15%. Customs duties on some foods that have been so high as to effectively block imports were cut sharply.
The order signed by Steinitz eliminated customs duties ranging from 8% to 12% on popular consumer-oriented products such as clothes driers, vacuum cleaners, microwave ovens, fans, hair-driers, toasters, electric blankets and electric toothbrushes, coffeemakers, irons, toasters, headphones, lamps, glasses, sunglasses, goggles, batteries and more.
In addition, the finance minister signed an order canceling the purchase tax on imported electronic goods used for home entertainment. Currently, a 15% purchase tax rate is imposed on television sets, stereo systems, video equipment and DVD players.
Some of the duty reductions go into effect immediately while others will take as long as four years to give domestic manufacturers time to adjust to the new import competition.