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"If we did not import tomatoes, the price would be 25 shekels per kilo" - Walla! Of money

2021-11-10T10:14:22.585Z

Are centralization and protective caps (both under the responsibility of the state) the fuel for the high prices in Israel?



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"If we did not import tomatoes, the price would be NIS 25 per kilo."

The outburst of Rami Levy, as a result of which he was removed from the discussion in the Economics Committee, and especially his claim that it was the state that was to blame for the high cost of living.

Raises the question: Are centralization and protective caps (both under the responsibility of the state) the fuel of the high prices in Israel?

Research data from the Knesset support Levy's remarks

Tags

  • Rami Levi

  • Cost of living

  • Protective caps

  • Centralization

  • food

  • Retail

Sonia Gorodisky

Wednesday, 10 November, 2021, 11:42 Updated: 12:03

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Rami Levy on the culprits in the cost of living (without credit)

During the heated debate is currently underway, Economic Affairs regarding the cost of living in Israel, Rami Levy supermarket chain with his name, was discussion after an exchange of words between him and MK Ofir Soufir.



A minute later, more, still agitated, stood Levy with the media. At the beginning of words Levy noted that "Our gross profit is 21%, the same as the average in Western countries. Prices in Israel are 50% more expensive than in OECD countries.



I mean, whoever is responsible for the cost of living in Israel is not the chains, it is the state, tariffs, words, expensive fuel, expensive cars, expensive property taxes, expensive electricity, everything here is expensive. The one who is most responsible here is the one whose monopoly, concentration and power is the state and not anyone else. We have competition, we live for competition. "



Levy continued: "I am attacked in the media for importing goods to lower prices, I am attacked for selling fruits and vegetables cheaply and this harms agriculture. If we did not import tomatoes and sell them for NIS 2-4 per kilo, the tomatoes would be sold for NIS 25 per kilo. ".

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Rami Levy is removed from the discussion in the Knesset's Economics Committee

In the video: Discussion in the Economics Committee on the suspicion of coordinating prices in supermarkets (Photo: Knesset Channel)

"I do not know who you are, but you are a populist"

MK Ofir Sofer

attacked Levy regarding the profitability of the rising network, as well as the issue of Israeli agriculture. Levy said in response: "I do not know who you are. But you are a populist, you do not serve the consumer, do not come tell me anything. "Following these statements, Levi was hearing.



But anyone who thinks that Rami Levy said this in a moment of rage, mistaken: Documentation of

Research and Information Center Committee

supports these words of Levy. The Knesset study states that "In the marketing chain, retailers purchase from local industry or imports. "In some food products, there are high tariffs that actually prevent the possibility of importing."



The food price index in Israel in terms of purchasing power is about 36% higher than the OECD average. OECD), and the only category in which the price level in Israel is low compared to OECD countries is vegetables and fruits.

Rami Levy erupts on MK Ofir Sofer, during a discussion in the Economics Committee (Photo: Photo Processing, Yonatan Zindel)

The Knesset Research Center confirms: Customs and centralization are the causes of high prices

At the Knesset Information and Tomorrow Center, they were based, among other things, on examining the effect of high protective caps on prices.

The researchers found that when the caps were lowered and the market opened up to competition, prices dropped.

If we are allowed to add with a certain cynicism: a rule known to anyone who does not live in Israel.



The authors of the study conclude that "the cost of living in Israel of food and consumer goods is relatively high due to a variety of reasons, including a relatively low share of imports due to tariff and non-tariff barriers, concentration in the local food industry and concentration in the food retail industry, relatively low productivity in agriculture, food industry "Retail trade in Israel compared to developed countries, relatively high VAT rates compared to European countries, kosher costs and other reasons."

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Source: walla

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