The Minister of Finance, Avigdor Lieberman, today (Wednesday) signed an order abolishing the two-month purchase tax on disposable plastic-coated paper utensils.
From today at midnight until February 15, 2022, no purchase tax will apply to these products, after which the purchase tax will be NIS 3.3 per kilogram.
As you may recall, on November 1, a purchase tax on disposable utensils in the amount of NIS 11 per kilogram came into force, and on November 30, the tax rate for paper-coated utensils was reduced to NIS 3.3 per kilogram.
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In order to facilitate taxpayers who paid a purchase tax of NIS 11 per kilogram on these products, from November 1 to November 30, it was decided to abolish the purchase tax for a period of two months.
The Treasury argues that imposing the tax on disposable utensils is intended to change consumer behavior flexibly and also complies with the “polluter pays” principle so that anyone who consumes disposable utensils at higher levels will bear the cost of the environmental damage.
According to the data, the level of consumption of disposable utensils in Israel is five times higher than in the EU countries and there is a constant increase in their consumption.
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