One week ago Tnuva Food Industries Ltd. made the dramatic announcement that it was lowering the price of cottage cheese to retail chains to NIS 4.55 including VAT, and that the recommended price to consumers should be NIS 5.90 per container. Yet it now seems that the announcement has been contradicted.
A document obtained by Globes shows that Tnuva has in fact told the retail chains that the price of cottage cheese should be NIS 4.55 before VAT, effectively raising the price to NIS 5.30 after 16% VAT is added. This price is above the NIS 5 threshold that the leaders of the consumer boycott set.
Last week when Tnuva made their announcement about the lower price Globes explicitly asked the company if the new price included VAT and was clearly told by Tnuva's spokesman that it did.
The retail chains today accused Tnuva of "throwing sand in the public's eyes" and said that a PR exercise at the public's expense had taken place.