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Opinion | Before ketchup and sausage: Remove lids from fruits and vegetables Israel today

2022-02-12T21:06:16.862Z


When the government raises taxes on sugary drinks, and two months later lowers duties on sausages and ketchup - it does not indicate consistency • Maybe it is better to start with fruits, vegetables and eggs, which are much more expensive than in OECD countries?


Less than half of the budget of the cost-of-living plan presented last Wednesday is actually devoted to dealing with the cost of living.

The other measures are intended to increase the disposable income of different populations, and the main beneficiaries are of course the families with children aged 12-6. 

The measures of the program designed to directly combat the cost of living are lowering tariffs on various consumer goods and raw materials, and lowering the excise tax on coal to lower the electricity tariff.

Are these measures sufficient for us to feel a reduction in products in the coming months, that is, will the removal of the caps be rolled out to consumers?

Oxymoron

It is worth returning to the presentation of finance and a reflection that refers to lower food prices - "zero customs".

On the one hand, this is undoubtedly a welcome and welcome move in a country with a limited number of food importers.

The government assumes that competition will do its thing anyway, and will lead to lower prices.

So this is - that it's not sure.

When in 2021 the dollar fell - we did not feel a reduction in products imported accordingly.

Why is this happening now?

The basic premise of the decision maker is that if and when new players enter, small importers - they will be able to create competition and prices will go down.

The bottom line, apparently does not just provide lower caps, and the state should encourage new players to enter the market by creating incentives.  

A little about the consistency of the government.

When the government raises taxes on sugary drinks just before the start of the rising price wave to reduce diabetes, and two months later lowers tariffs on sausages and ketchup, it does not indicate the consistency of decision makers.

Seven years ago, the Ministry of Health recommended lowering the consumption of processed meat, which is defined as "certainly carcinogenic."

Even ketchup (regular, not reduced sugar) does not excel as a healthy product - 100 grams of this product contain 22.5 grams of sugar, 2.5 times the amount of sugar in Coca-Cola.

Applying a tax on sugary drinks has led to the outrage of the ultra-Orthodox, who have claimed that Finance Minister Lieberman imposes taxes to hurt this population, which often consumes sugary drinks and disposable utensils.

On the other hand, the Ministry of Finance claimed that the intention was to protect public health and the environment, and mentioned alarming numbers about the incidence of diabetes and obesity rates among children.

Health first - so this is a justified tax, we were told.

But two months later, the government is making a flak and also promising to reduce ketchup and sausage.

Maybe it is better to start with fruits, vegetables and eggs, whose prices are tens of percent higher than in OECD countries?

In some families, fruits and vegetables have become a luxury, and do not form part of the daily menu.

And what about the agricultural reform, which was supposed to lower the prices of fruits and vegetables?

Not much so far.

Negotiations with the farmers are stalled, and the Treasury is waiting for the committee's conclusions to examine the brokerage gaps to decide who cuts the fattest coupon on the way from the agricultural field to the consumer carts at the supermarket.

Were we wrong?

Fixed!

If you found an error in the article, we'll be happy for you to share it with us

Source: israelhayom

All news articles on 2022-02-12

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