Ministry of Finance Chief Economist Yoel Naveh's recommendation comes as excise on fuel is set to fall on January 1.
Israel's Ministry of Finance chief economist Yoel Naveh recommends raising excise on fuel products. In presenting the Ministry of Finance report for Israel Tax Authority and National Insurance payments for 2014, he noted that NIS 17.4 billion was paid in excise on fuel products. In his estimates, excise on these products should be raised to bring in an extra income of NIS 3 billion.
In 2014, the price of a barrel of Brent crude oil fell 31% in dollar terms, while the price per liter of 95 octane gasoline fell only 7% in shekel terms to the consumer. He noted, "The excise fixed serves as an automatic stabilizer of prices to the consumer when the price of oil is rising too."
Naveh's recommendation comes as the amount of excise charged on a liter of 95 octane gasoline is set to fall by NIS 0.03 on January 1, following the annual update of the excise charged.
Published by Globes [online], Israel business news - www.globes-online.com - on December 28, 2015
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Fuel pump