New Year arrives with price rises and tax hikes

Net income beginning in 2014 is projected to drop and the recent stormy weather has sent prices of fresh vegetables soaring.

By JOHN BENZAQUEN
January 2, 2014 02:33
1 minute read.
Woman shopping in Machane Yehudah.

old woman shopping in shuk 390. (photo credit: Marc Israel Sellem / The Jerusalem Post)

The year 2014 has started with a bang as far as expenses are concerned, as we will pay higher property taxes and more for public transport and some basic goods.

To rub it in, net income beginning in 2014 is projected to drop and the recent stormy weather has sent prices of fresh vegetables soaring. Rough estimates put the additional monthly expense for an average family at NIS 200, out of an average income of about NIS 6,200.

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The cost of bus and railway tickets has gone up mainly because the government wants to cut subsidies. A city bus ride has gone up from NIS 6.60 to NIS 6.90, while the price of a bus ticket from Jerusalem to Tel Aviv has risen by a shekel.

Train tickets have risen accordingly, with a ticket from Tel Aviv to Haifa now costing NIS 32; a price hike of NIS 1.50.

Operating a car has become even more expensive, as the price of gasoline rose January first by 5% due to the international market.

Taxi fares have not changed yet, but are expected to have to adjust to the increased cost of fuel.

From the first of January, arnona (property taxes) are set to rise an average of 3.5%.

The highest price increase will affect smokers, with the average price of cigarettes up 35%.

In 2014 we will be paying more but getting less, as net income is set to fall by 0.5%.

This is due to compulsory monthly payments amounting to 5.5% of gross salaries, compared to 5.0% in 2013.

Businesses will also fill the pinch, as company taxes have risen by 1.5% to 26.5%.


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