An order signed by Prime Minister and acting Minister of Finance Benjamin Netanyahu raises customs duties on TV converter boxes for HOT Telecommunication Systems Ltd. (TASE: HOT) and DBS Satellite Services (1998) Ltd. (YES) by 10%. At the same time, the 10% purchase tax on the digital and cable TV converter boxes will be cancelled.
These measures are expected to allow Flextronics Israel in Ofakim in the Negev and other Israeli electronics companies to more easily manufacture and market digital and cable TV convertor boxes for the Israeli market.
Government officials feel that this new tax regime for TV converter boxes will allow Flextronics to open a new production line by changing the plant's product range and opening up exports lines. The plant's conversion to TV converter boxes will be completed by the beginning of 2016 and prevent 300 layoffs.
Flextronics had decided to reduce its workforce in Israel, especially at its plants in Ofakim and Arad, in part due to higher manufacturing costs because of the strength of the shekel against the dollar.
Published by Globes [online], Israel business news - www.globes-online.com - on March 2, 2015
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