As the new Israel Postal Company was born on Wednesday, officials announced higher rates given the requirement that for-profit state companies must pay value-added taxes. However, only nine to 12 percent and not the full VAT will be charged. From now on, a regular domestic letter costs NIS 1.50 to mail instead of NIS 1.30, and a heavier letter up to 100 grams will cost NIS 2.50, up from NIS 2.20. A package of up to one kilo costs NIS 19, up from NIS 12, and a package weighing up to 20 kilos costs NIS 23 rather than NIS 15. It costs NIS 29 plus 25 agorot for every extra word beyond 10 words to send a telegram instead of NIS 26 plus 20 agorot and NIS 5.90 for registered mail up from NIS 4.90. A postcard costs NIS 1.50 raised from NIS 1.40 while the price of bulk mail that is sorted and has a postal code and weighs up to 15 grams costs NIS 1.07 per piece for up to the first 100,000 copies instead of 98 agorot. Meanwhile, the Postal Authority Council met for the last time on Wednesday and approved its 2005 financial reports. Income totaled NIS 1.68 billion, a rise of NIS 33 million compared to 2004. Its deficit was reduced by NIS 30m. to NIS 55m. (not including costs of establishing the new company), while total investments for 2005 were NIS 81m.