28.12.2011                      02.Tewet. 5772                       Channuka 8

Wirtschaft:

Warring ministries shoot down plan to lower import tax on food

No progress has been made for months due to a dispute between the Finance Ministry and the Industry Ministry regarding timeframe.

The government has managed to work out how to lower import taxes on non-food items, but can't seem to work out a similar deal for food. Next week import levies on hundreds of manufactured goods will be dropping, yet a similar drive for imported foodstuffs has bogged down and seems unlikely to proceed for months.
The issue of tax on food imports is being handled by the committee investigating food prices, headed by Industry and Trade Ministry director general Sharon Kedmi. No progress has been made for months due to a dispute between the Finance Ministry and the Industry Ministry regarding timeframe. Sources close to the committee said the treasury wants duties to drop quickly, in keeping with the Trajtenberg committee recommendations, in two tranches over two years. The Industry and Trade Ministry prefers the change take place over five years, similar to the reform involving other import duties….