https://www.gov.il/he/departments/news/press_07062020_b Prime Minister Benjamin Netanyahu and Finance Minister Israel Katz have decided: permanent cancellation of tariffs and purchase taxes on a wide range of products amounting to NIS 1.45 billion per year; in addition, they have agreed to grant 35 days of unemployment entitlement to those entitled

Unit Budget Department

Topic Corona

Secondary issue Steps of the Ministry of Finance

Date published 07.06.2020

Prime Minister Benjamin Netanyahu: "The Minister of Finance and I debated and received two summaries to make it easier for the public at this time. The first is to extend the duration of entitlement to unemployment benefits, and the second is to ease tariffs on a range of products - cell phones, clothing, footwear and more. Here it is to move the economy, to move the wheels, to make it easier for you, the citizens of Israel. "

Finance Minister Israel Katz: "Along with the big plan we are leading and launched to stimulate the return of one million unemployed to work, we have also been looking for the same things that will make it easier for the public in the meantime. The most important thing as the Prime Minister said, is to extend the duration of entitlement to unemployment benefits for young people, to give everyone another month at the same time that the economy was closed, we will add this month so that as soon as unemployment benefits are over they will get another month. thousands of people".

In accordance with the recommendation of the professionals, the numeration of unemployment days will begin on April 19, 20 and not from March 15, 20. Therefore, the number of days of unemployment will not include the period during which significant activity restrictions were imposed on the economy due to the corona crisis. As a result, the eligibility period will be extended in accordance with the existing eligibility rules by approximately 35 days.

In addition, the Prime Minister and Minister of Finance Israel Katz decided on the permanent abolition of customs and purchase tax on a wide range of products, including cell phones, clothing and footwear, baby products, entertainment electronics (televisions, monitors, speakers, etc.), household appliances, toys. And games, cosmetics and more in the amount of about 1.45 billion shekels a year.

The decision to permanently abolish tariffs was made after the Prime Minister and the Minister of Finance were presented with an effectiveness test, which showed that the temporary abolition of tariffs and purchase taxes, led to a significant reduction in consumer prices over time, even compared to other countries.

The Prime Minister and the Minister of Finance instructed to continue to conduct a periodic review of the level of prices in these markets, in order to ensure that the reduction continues to be passed on to consumers.

As part of the decision, the caps and purchase taxes on the following products will be permanently abolished:

 Mobile Phones - 15%  Footwear - 12%  Clothing and textiles - 6%  Entertainment electronics (TVs, speakers, monitors, converters, projectors, amplifiers, microphones, headphones, smart cards, radios and more) - 15% -30%  Household appliances from 6% -12%  Lamps and chandeliers - from 8% -12%  Toys and Games - 12%  Cosmetics - 12%  Baby products - 12%  Frames and lenses for glasses - 12%