Import duty on butter, potatoes canceled

“The decision to lift the customs duty was taken in view of the increased shortage in the dairy market," Tax Authority says.

By SHARON WROBEL
October 29, 2010 05:33
2 minute read.
MEMBERS OF the Garda, Ireland’s police, protect Is

israel boycott groceries 58. (photo credit: AP)

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later Don't show it again

Finance Minister Yuval Steinitz on Thursday approved an exemption of import duties on butter and potatoes.

“The decision to lift the customs duty was taken in view of the increased shortage in the dairy market and in response to the Agriculture Ministry’s request to the Israel Tax Authority to cancel all customs duties on imported, industrially produced butter in an effort to reduce the shortage in the milk market,” the ITA said in a statement.

Be the first to know - Join our Facebook page.


Following the decision, import duties will be lifted for an unlimited amount of butter for packages of over one kilogram until the end of January 2011. Imported butter is currently subject to a 160 percent customs duty.

Throughout this year the ITA has been monitoring signs of a shortage in the milk market and had a duty exemption approved in July on the import of butter for packages of over one kg. for a limited quantity of 400 tons.

The government levies customs duties on butter and other dairy products to protect local dairy farmers and dairies. Since Israeli cows yield less milk during the hot summer, the extra milk that is produced during the winter is made into milk powder, to be used throughout the year.

Special cooling systems help improve the cows’ conditions and milk yield. However, this year, as a result of severe heat during the summer months and a relatively warm fall, dairy farmers have encountered difficulties in producing enough to meet demand.

The dairy market is protected and allows very limited imports, which is under tight supervision by the Industry, Trade and Labor Ministry. Only about 550 tons are imported annually, in a market of some 9,000 tons of local production.



Milk products make about 9% of the total agricultural products market value. Israel has a total annual output of approximately 1,217 million liters of cow milk, 9.0 million liters of sheep milk and 11.1 million liters of goat milk.

Steinitz also approved an exemption of a customs duty of NIS 1.90 per kg. on the import of potatoes in response to signs of a shortage in local production in recent months.

The exemption is limited to 5,000 tons of potato imports from all over the world.

Last week, Steinitz signed a directive to cancel the customs duty on tomatoes in response to a sharp rise in tomato prices in September caused by summer heat waves. The customs duty on tomatoes of NIS 0.90 per kg. will be canceled until the end of 2010 and is limited to the import of 4,000 tons of tomatoes. Canceling the import duty is expected to lower prices by making it easier to import tomatoes and reducing the shortage caused by weather damage.

Related Content

The Teva Pharmaceutical Industries
April 30, 2015
Teva doubles down on Mylan, despite rejection

By GLOBES, NIV ELIS