Finance Minister Avigdor Lieberman today (Thursday) issued for public comment the order abolishing customs duties on imports of fresh, frozen, processed fish and seafood in order to lower prices and reduce the cost of living.
The order, which was issued in coordination with Agriculture Minister Oded Forer, includes the abolition of customs duties on a variety of fish such as sea bream, leech, locust, tuna and other seafood.
Fish prices in Israel are 24% higher than in OECD countries, and customs duties on fish imports are particularly high.
Thus, for example, the customs duty on imports of fresh fish fillets may reach NIS 11 per kilo, and significantly increase the price of the fish to the consumer.
The Ministry of Finance says that the abolition of customs duties on fish imports is expected to lower the price to the consumer, increase fish consumption and increase the variety of fish imported to Israel.
"The industry is facing liquidation"
On the other hand, the fish farmers' organization warns that the reduction of customs duties will actually lead to a general increase in prices in the fresh fish market in Israel, in the near and distant future.
According to Eli Sharir, CEO of the Israel Fish Breeders' Association, the reduction in customs duties will not lead to a decrease in the price to the consumer - but to an increase: "This is what happened in 2016. That is now reflected in rising prices. "
Minister of Finance Avigdor Lieberman (Archive),
Sharir added: "Since the tariff reduction began, it has led to a certain and temporary drop in the price, which has been halted and is now almost completely erased, with the jump in transport and import prices.
Sharir further said that the previous lowering of the caps had led to damage to domestic production.
According to him, since 2016 there has been a 21% decrease in growers' revenues, resulting in a 20% decrease in the number of active farms in the industry.
The fish farmers' organization emphasizes that huge investments are being made all over the world in the development and increase of land production of the fish near the demand centers, in order to improve their freshness and availability.
According to them, in Israel, on the other hand, the terrestrial fishery industry suffers from "repeated cuts" and even "faces liquidation."
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