Minister of Finance Moshe Kahlon today signed the orders for the abolition of customs duties on a range of imported products. The measure will come into effect over the next few days, under a temporary order valid until December 31, 2018. It will cover selected items of clothing and textiles, light fittings, home electrical products and their parts, refrigerators, freezers, heating and cooking stoves, food mixers, and more. Duty will also be abolished on perfumes and cosmetics, toys, and sports accessories.
The orders were signed as part of Kahlon's "Family Net" program designed to reduce the cost of living in Israel. While the temporary order is in force, its effectiveness will be examined and its extension considered, taking into account fiscal constraints in the 2019 budget.
The Ministry of Finance estimates the loss of revenue as a result of the abolition of customs duties at NIS 543 million, which is in addition to the loss of NIS 245 million resulting from the abolition of purchase tax on electronic products announced last month.
Kahlon said, today, "The signing of these orders and completion of the measures announced are a direct continuation of our policy to reduce taxes and duties, to return excess tax collected to taxpayers, and to stimulate economic growth. 2018 is the fourth successive fiscal year of lower taxes and duties for Israel's citizens. These moves also help small and medium-size importers, as well as end consumers. We are already seeing their effect in growth, higher private consumption, and lower prices."
Published by Globes [online], Israel business news - www.globes-online.com - on January 22, 2018
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