Canned tuna fish prices to be cut
Finance Minister Lapid signs order lowering customs tariffs on product's import, which is expected to lead to price reduction starting November 1
Finance Minister Yair Lapid
has signed an order lowering customs tariffs on the import of canned tuna fish, which is expected to lead to a reduction in the product's price.
Cutting the rate of tax paid on canned tuna fish is aimed at creating an effective price reduction for the end consumer and increasing competition in the local market.
The customs reduction was recommended by the Kedmi Committee, which was tasked with examining the level of competitiveness and prices in Israel's food and consumer goods market.
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The finance minister decided to lower the customs tariffs in a gradual move over the years 2013 to 2016, so that at the end of the process they will stand at just 12%.
At the moment, the tax rate paid on canned tuna stands at 12% + NIS 3.51 ($0.97) per kilogram. The gradual move is aimed at allowing the local industry to adapt to the change. The first customs tariff reduction will take effect on November 1.
From November 1 to December 31, 2013, the customs tariff will stand at 12% + NIS 3 ($0.83) per kilogram, from January 1 to December 31, 2014, it will go down to 12% + NIS 2 ($0.55) per kilogram, from January 1 to December 31, 2015, it will drop to 12% + NIS 1 ($0.28) per kilogram, and from January 1, 2016, it will stand at just 12%.
