The Economic Reform Plan-Reduction in Taxes
Below are the main reduction in taxes in the new economic reform plan
1. Reduction in Purchase Tax Rates - In Effect from February 12, 2004
| Product | Previous Purchase Tax rate in % | Effective Purchase Tax Rate in % |
Effective New Purchase Tax Rate in % |
| Household electrical products (oven, microwave, clothes drier, washing machine, dishwasher, vacuum cleaner) | 15% | 24% | 5% |
| Refrigerators | 15% | 25% | 8% |
| Entertainment Electronics | 45% | 45% | 15% |
| Vehicle Audio Systems | 45% | 45% | 15% |
| Light Bulbs | 10% | 18% | 0% |
| Lamps | 10% | 15% | 0% |
| Cheap Cosmetics | 5% | 7.50% | Exempt |
| Videos | 45% | 45% But not more than 1372 NIS per unit |
15% But no more than 47 NIS per unit |
| Video Projectors | 45% | 45% But no more than 2500 NIS per unit | 15% But no more than 2500 NIS per unit |
2. Reductions in Customs rates on basic commodities - In Effect February
12, 2004.
| Product | Previous Customs Rate | New Customs Rate |
| Rice | 5% | 0% |
| Pasta (noodles and macaroni) | 12% | 0% |
| Margarine | 3% | 0% |
| Coffee | 3% | 0% |
| Sugar Cubes | 6.80% | 0% |
| Sesame | 5% | 0% |
| Eggs (within the framework of quota) | 100% | 0% |
3. Reduction in V.A.T. to 17% - In effect March 1, 2004
Updated rates can be found on the Customs Tariff (Hebrew),
Import of
Durable Goods - Calculator (Hebrew), and
the Combined Duties Chart
Additional details will be published in the next few days.
