(photo credit: Marc Israel Sellem)
Israeli taxes on homes are 75 percent above the OECD average, the Jerusalem
Institute for Market Studies reported in a study Thursday.
housing and dairy products are failures, and no market failures are involved,
the position paper said. Politicians blame the market to cover their own
shortcomings, it said.
The report cited a World Bank study that ranks
Israel No. 121 in the world for efficiency in obtaining building permits and No.
147 for efficiency in obtaining property rights after a real-estate
These procedures take four times longer in Israel compared with
the OECD average, the report said.
The said there was a heavy tax burden
on real estate, which generates 9.4% of the government’s tax revenues, compared
with the OECD average of 5.4%.
“When government measures fail to achieve
their desired results, there is a tendency to blame the market,” Jerusalem
Institute for Market Studies researcher Yarden Gazit said in the report. “But in
the case of the housing market, the failure is a government failure from A to
Government policy is responsible for the price rises for basic food
products, she said, adding: “Israel’s dairy market is run on the Soviet
The Israel Dairy Board sets how much milk will be produced, by
whom and the price it will be sold to dairies. Imports and free competition are
banned by the Dairy Market Planning Law.”
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