New taxes on luxury goods

Among the items to be taxed: prestige cars, big television screens - and Jacuzzis.

As agreed in the draft state budget for 2013-14, Minister of Finance Yair Lapid is levying taxes on luxury goods. He has signed the directive raising the purchase tax on luxury goods on which the tax is already levied, and levying the tax on other goods which were not taxed before. The taxes come into effect on September 1.

The measure, drawn up by the Tax Authority, will raise an estimated NIS 110 million in tax revenues.

From September, the purchase tax on cars costing more than NIS 300,000, most of which are high-emission vehicles, will be raised. The purchase tax on a car with a retail price of NIS 1 million will rise from 83% of the importer's price to 97%.

From Sunday, August 18, purchase tax on off-road vehicles and all-terrain vehicles will rise from 30% to 50%; purchase tax on 50-inch or larger television screeens will rise from 15% to 30%; and a tax of NIS 550 will be levied on refrigerators larger than 800 liters.

Purchase taxes will be levied on previously untaxed luxury goods, such as furs, antique furniture, yachts, jet skis, and planes. A 15% tax will be levied on private planes (except for planes used to provide scheduled services, for agriculture, or for firefighting) and yachts; a 20% tax will be levied on jet skis; a 20% tax will be levied on furs and antique furniture; and a 12% tax will be levied on Jacuzzis of which any dimension, including the diagonal, is in excess of 100 cm (the effective import duty will be 19.2%).

Published by Globes [online], Israel business news - - on August 15, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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