Purchase tax exemption on televisions, DVD players to be revoked

The Ministry of Finance will cancel the purchase tax exemption on home entertainment systems, including televisions and DVDs - even before the exemption comes into effect.

The purchase tax on home entertainment systems generates no more than NIS 500 million a year. The Ministry of Finance has decided that it is not worthwhile foregoing this revenue, and is therefore cancelling the exemption, even before it was due to take effect, as part of the fiscal package that will be submitted to the cabinet tomorrow to deal with the budget hole.

Earlier this month, Minister of Finance Yuval Steinitz signed a directive cutting customs duties on hundreds of electronic consumer products, ranging from vacuum cleaners to microwave ovens, as part of the Trajtenberg Committee recommendations to increase competition and lower the cost of living.

Published by Globes [online], Israel business news - www.globes-online.com - on July 29, 2012