The Finance Ministry announced that it is set to reduce import duties on more essential items, including baby products and eyeglass frames. Most baby products – including strollers, cribs, bottles, pacifiers – carry a 12 percent import duty, which is to be eliminated. Products will still carry 17 percent value added sales tax (VAT). The duty reduction does not apply to imported diapers.
In addition, import duties on eyeglass frames will be eliminated. Those, too, currently carry a 12 percent duty.
The elimination of the duties signals the completion of the ministry’s “Family Net” plan, instituted last year, to reduce the cost of living for Israelis. Among the import duties that have been eliminated were those for cellular products, computers and shoes. Duties on baby clothing are still in effect, after local manufacturers lobbied against them.
“We committed ourselves to bringing this plan about, and we worked hard to bring it about, in our efforts to help the middle class and working families,” Finance Minister Moshe Kahlon said. “The result will be an increase of thousands of shekels a year in the income of families, money that will help further stimulate the economy, as families will spend it on their needs. Israelis have waited long enough to get what they deserve from the state.”