On video: The government approved the state budget for 2024 15.01.2024/Video (upload): Omer Miron / L.A.M., Sound: Ben Peretz / L.A.M.
Were you shocked by the sharp price increase that came into effect today?
You will still miss her.
To me and voila!
Money has received a draft decree 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 that approach 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.
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.
The decision that will increase the cost of living/image processing, Amos Maron
If this is not enough, the Ministry of Finance plans to advance in the context of the fuel the increase in purchase taxes, customs, exemptions, and purchase taxes on goods, which will bring in, according to the expectations, 224 million shekels in 2025 and 2.5 billion shekels in 2030.
Here is the place to explain that fuel taxation entails a horizontal price increase throughout the economy, since industry, retail, services and households are based on energy and electricity.
The increase 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 supervised food products, bread, milk, white cheese and eggs, because it is part of the formula for calculating the supervised prices.
In addition, the state, which obliges the factories to switch to natural gas, intends to make it more expensive by huge rates, and the manufacturers will roll 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 that promised not to raise taxes and fight the cost of living, intends to impose heavy taxes on the citizens through the back door and fuel the cost of living with its own hands.
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"Devastating decision"/Government Press Office, Mark Israel Salam
This move, which will come into effect next year, makes the next governments eager, who will have to deal with the minefield that the Minister of Finance, Bezalel Smotrich, lays for them.
This mine will blow up in all of our faces in three or four years, when the prices of coal, natural gas, and gasoline will become patently illogical.
Such disproportionate tax increases have not been seen in Israel for a very long time.
On the road they are moderate, to imperceptible, between 1% and 5%, and certainly not by 1,000%.
The treasury hoped that this would pass under the radar.
So Bamba will cost every citizen ten more cents, who will feel?
But when both the bamba and the milky, and the milk under supervision go up, the cost of living will become monstrous.
Attorney Roi Cohen, president of the Lahav Chamber of Independent Organizations and Businesses in Israel, said that, "It is unthinkable at this time to bring about an increase in the production costs of the business sector, we are an economy that operates during wartime and suffers from a decrease in turnover in almost all branches of the economy, raising the costs of electricity and fuel is a sure recipe for raising The cost of living for all citizens of the country.
"The Israeli government can divert other budgets such as coalition funds and unnecessary government offices that produce duplication and bureaucracy to prevent this increase in production costs for the entire economy. This is a devastating decision that must be fought to be canceled in the budget debates in the Knesset."
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fuel
gas
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coal
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the state budget
taxes
Bezalel Smotrich
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Gaza war