Prime Minister Benjamin Netanyahu and Minister of Economy Nir Barkat met with factory owners and industrialists from the north at the "Tnuva Galil" factory/Omer Miron/L.A.M., Sound: Ben Peretz/L.A.M.
Economy Minister Nir Barkat said to Walla!
Because "the order to raise the tax on gas and fuel is a grave mistake that will lead to severe price increases."
Barkat referred to the publication earlier today, according to which the Minister of Finance intends to sharply raise the excise tax, which will lead to an increase in the prices of products and transportation and will increase the cost of living.
According to Barkat, "I call on the Minister of Finance not to sign the order that will make life difficult for the citizens of Israel. It is precisely during the war that it is our duty to take care of the citizens' well-being and ease the cost of living - instead of burdening them."
This morning a draft decree was published that is included in the 2024 budget, and is expected to be approved by the Finance Committee soon, which increases the taxation on the excise tax that includes the prices of coal, natural gas and fuel at crazy rates approaching 1,000% in some products, which will result in an increase of over 8% in electricity prices , and a wave of price increases for food products in general and supervised food products in particular.
The excise tax/image processing, Amos Maron
In the explanation of the order, the Ministry of Finance tries to hang the price increase on a government decision from 2021, to reduce the emission of polluting gases and greenhouse gases, even though the title explicitly says that it is a taxation of the excise tax on fuel, that is, an additional tax on the citizens of Israel.
The Treasury reassures that the taxation will be done gradually, to allow for an adjustment period, and energy efficiency will be encouraged.
The tax on coal will jump from NIS 147 per ton in 2025 to NIS 515 per ton in 2030.
Natural gas will rise from NIS 33 per ton in 2025 to NIS 192 per ton in 2030.
The 0.5% fuel oil will rise from NIS 92 per ton to NIS 951 in 2030, and LPG from NIS 176 per ton to NIS 658 per ton.
Fuel taxation entails a horizontal price increase throughout the economy, since industry, retail, services and households, are based on energy and electricity. The rise in coal and gas prices will be followed by an increase in the price of electricity, which is estimated at 8%. When electricity becomes more expensive, everything becomes more expensive. Including the regulated food products, bread, milk, white cheese and eggs, because it is part of the formula for calculating the regulated prices.
In addition, the state, which obliges the factories to switch to natural gas, intends to make it more expensive by enormous rates, and the manufacturers will pass the increase in energy prices directly into the pockets of the consumers, who will be forced to pay higher prices at the supermarket. This means that the government, which promised not to raise taxes and fight the cost of living, intends to impose heavy taxes on the citizens at the back door and fuel the cost of living with her own hands.
More on the same topic:
Nir Barkat
taxes
excise
fuel
Natural gas
Cost of living
Bezalel Smotrich