Importation of Consumer and Investment Products December 2004

  • During the year 2004, a clear trend of increase in importation of durable goods was seen, due to the recovery of the economic sector in 2004 as well as a reduction in Purchase Tax rates on many household electrical products. The significant increase, as compared to 2003, was seen during the first half of the year, however, the second half of the year also saw an increase in importation of durable good, but the rate of increase leveled off.

  • The offsetting influence of the increase in consumer goods was caused by the heightened price of importation due to the devaluation of the shekel against the EURO (8.6%) in 2004 , and accumulatively in the last two years, by approximately 25%. At the same time, the average dollar rate decreased in 2004 compared to 2003 by 1.6%. The changes in the crossed parities exchange rate between the EURO and Dollar were noted due to the devaluation of the dollar in the world markets, due to the weakening in the balance between the large trade blocks. (The US, EU, and the Far East).

  • The distribution of the importation according to currency influences the changes, therefore, for example, most of the vehicles are imported using the EURO, and the increase in purchases of vehicles should be seen positively, both in December, and accumulatively from the beginning of the year. The importation of vehicles in 2004 totaled in 150, 000 vehicles (private and commercial), compared to 122,800 vehicles in 2003 - an increase of 22%. The value of the vehicles (in dollars), increased by 26%. This discrepancy is explained by the changed in the crossed parities exchange rate of the dollar/Euro.

  • All the increases in revenue form importation taxes, approximately 1.5 Billion NIS, are from the increase in importation of vehicles, while there was no change in revenue generated from importation of other products, despite the fact that that there were significant tax cuts, and this is because an increase in importation of durable goods was seen, and therefore an increase in importation of other products levied with Purchase Tax was also seen.

  • The amount of imported cigarettes grew in 2004 compared to 2003 by 2.7%, however, the value of the importation of cigarettes increased by 8.8%. One of the reasons for this discrepancy may be the trend to import more expensive brands, , for example there is a tendency to move from importing very cheap cigarettes to slightly more expensive cigarettes, without significantly harming the more expensive brands.

  • Importation of durable products also increased in 2004 compared to 2003. For example importation of televisions increased by 25%, importation of DVD's increased by 104%, importation of refrigerators, grew by 12%, and importation of dishwashers grew by 15%. The main reasons for these increases are in the significant reduction of taxes in February and April, combined with the growth in the economic sector, which lead to an increase in the demand for these products. However, it should be noted that the accumulative contribution of electric and electronic products to the state's revenue is not high due to the relatively low tax rates on these products.

  • The revenue from importation of durable products in December, are in keeping with the recovery trend noted during the entire year. Still, based on high seasonal end of the year data, importation during the month of December was relatively low.
    During December, a sharp increase of 34% in importation of vehicles was noted (approximately 17,000 vehicles). In some of the durable products and decrease was seen, for example a 14% decrease was noted in the importation of clothes dryers, an 8% decrease was seen in refrigerators. However for DVD's the increasing trend was noted, and importation increased compared to 2003 by 125%, as well as televisions, for which importation increased by 50%.


    IMPORTATION OF VEHICLES AND PARTS- DECEMBER 2004 (in millions of US$)
    (Quantity in Units,Value in millions of $ and Purchase Tax Revenue in Millions of NIS)

    ACCUMULATING - FROM BEGINNING OF THE YEAR
    Vehicle and Parts Type Jan.-December 2003 Jan.-December 2004 Change in %
    Quantity Value in $ Revenue in $ Quantity Value in $ Revenue in $ Quantity Value in $ Revenue in $
    Passenger 109,905 1,174 4,202 139,595 1,579 5,702 22.5 30.3 31.6
    Commercial 12,924 153 510 10,918 150 501      
    Two-Wheeled 7,881 12 31 9,373 17 44 18.9 36.1 39.9
    Trucks and tractors 3,669 156 36 4,492 180 42 22.4 15.6 16.2
      Spare parts   254 212   286 232   12.6 9.7
      TOTAL   1,749 4,991   2,212 6,521   26.4 30.7

    MONTHLY
    Type December 2003 December 2004 Change in % Change in % Compared to Previous Month
    Quantity Value in $ Revenue in $ Quantity Value in $ Revenue in $ Quantity Value in $ Revenue in $ Quantity Value in $ Revenue in Shekels
    Passenger 11,593 131 449 15708 182 647 34.3 36.4 41.3 24.6 23.9 24.2
    Commercial 1044 16 51 1265 18 59  
    Two-Wheeled 678 1 3 568 1 3 -16.2 12.1 10.0 -42.6 -21.3 -20.2
    Trucks and tractors 457 20 5 387 19 4 -15.3 -2.8 -14.3 -24.4 -0.1 -5.9
    Spare parts 22 18 26 21 20.3 17.0 -3.7 -3.1
    TOTAL   189 525 246 734 30.3 39.8 20.3 22.8

    Note:
    Beginning on March 1, 2004 Jeeps and Minivans were added to the passenger category,which are classified in the fourth addition to the VAT regulations.

    Begininng from the month of April, the monthly publication will include details acording to the types of vehicles: passenge, commercial, two-wheel trucks and tractors.


    Import of Consumer Goods-DECEMBER 2004
    (Quantity in Units,Value in millions of $ and Purchase Tax Revenue
    in Millions of NIS)


    Accumulating From The Beginning of the Year
    Product Jan.-December 2003 Jan.-December 2004 Change in %
    Quantity Value in $ Revenue in $ Quantity Value in $ Revenue in $ Quantity Value in $ Revenue in $
    Household Elec. Appliances Refrigerators 185,791 4.9 63.5 208,617 75.9   12.3 19.5
    Washing Machines 186,438 5.1 44.2 200,021 51.9   7.3 17.6
    Clothes Dryer 54,660 1.8 9.1 51,904 9.8   -5.0 7.1
    Dish Washer 49,851 1.4 14.8 57,201 18.1   14.7 21.7
      Other   8.2 57.8   92.9   60.6
      TOTAL   21.4 189.4   248.6 76.6 31.2 -59.8
    EntertainmentEle T.V. 305,132 5.6 61.7 411,227 97.2   34.8 57.4
    Video 72,601 0.5 7.9 70,549 8.0   -2.8 1.2
    DVD 203,732 1.3 15.6 415,016 24.9   103.7 60.3
      Other   7.3 73.7   136.7   85.6
      TOTAL   14.8 158.8   266.8 175.2 68.0 -30.3
    Cigarettes (Thousands of packets)   262,598 9.9 100.9 269,736 109.7 2198.6 -5.6 -0.2 -5.6

    MONTHLY
    Product Jan.-December 2003 Jan.-December 2004 Change in % Change in % Compared to Previous Month
    Quantity Value in $ Revenue in $ Quantity Value in $ Revenue in $ Quantity Value in $ Revenue in $ Quantity Value in $ Revenue in NIS
    Household Elec. Appliances Refrigerators 13,755 4.9   12,675 4.9   -7.9 0.1 -3.7 -4.9
    Washing Machines 20,600 5.1   19,460 5.2   -5.5 1.8 13.9 9.2
    Clothes Drier 10,720 1.8   9,266 1.9   -13.6 6.0 -25.7 -15.2
    Dish Washer 4,280 1.4   4,468 1.6   4.4 12.6 10.0 21.3
    Other   8.2     10.9   33.6
    TOTAL   21.4 19.2   24.5 5.4 14.6 -71.7 12.8 -6.3
    EntertainmentEle T.V. 26,080 5.6   38,726 9.3   48.5 66.8 12.5 12.1
    Video 6,120 0.5   4,109 0.8   -32.9 69.1 -30.3 46.3
    DVD 17,950 1.3   40,511 1.6   125.7 16.0 26.5 8.7
      Other   7.3     13.2   80.1
      TOTAL   14.8 24.0   24.9 14.5 68.9 -39.6 -5.6 -4.7
    Cigarettes (Thousands of packets) 23,882 9.9 196.3 21,944 9.0 186.8 -8.1 -8.5 -4.8 -4.9 -4.3 -0.1



    Purchase Tax Revenue from other products - December 2004
    (Quantity in Units,Value in millions of $ and Purchase Tax Revenue
    in Millions of NIS)


    PRODUCT Value in $ Purchase Tax Revenue in NIS Change in % Value in $ Purchase Tax Revenue in NIS Change in %
    Jan-Dec 03 Jan-Dec 04 Jan-Dec 03 Jan-Dec 04 Value Revenue Dec 03 Dec 04 Dec 03 Dec 04 Value Revenue
    Telephone 327.0 409.9 213.7 274.8 25.4 28.6 327.0 409.9 213.7 274.8 25.4 28.6
    Alcohol 41.2 44.2 156.0 170.6 7.3 9.3 41.2 44.2 156.0 170.6 7.3 9.3
    Fuel 580.0 1106.0 243.3 402.2 90.7 65.3 580.0 1106.0 243.3 402.2 90.7 65.3
    Air Conditioners 39.9 39.9 70.2 78.5 -0.1 11.9 39.9 39.9 70.2 78.5 -0.1 11.9
    Cosmetics 94.4 107.1 56.9 64.1 13.5 12.8 94.4 107.1 56.9 64.1 13.5 12.8
    Chargers and Batteries 34.9 34.7 52.0 53.4 -0.6 2.7 34.9 34.7 52.0 53.4 -0.6 2.7


    Total Import (Not including Diamonds Jan.-December December Previous Month
    2003 2004 Change in % 2003 2004 Change in % Nov Change in %
    Value of Importation (Millions of $) 26,886 31,993 19.0 2,536 2,986 17.7 2,736 9.1



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