Minister of Finance Bezalel Smotrich might stop customs duty on the import of milk

Posted on Jul 2, 2023 by Ifi Reporter - Dan Bielski

The Minister of Finance, Bezalel Smotrich, published for public comment an order temporarily canceling the customs duty on the import of Niger milk, due to the shortage on the supermarket shelves. The order comes after Rami Levy and Shufersal appealed to the government to lower the barriers facing imports - including the high customs duty.
Currently, there is a 40% tariff on the import of milk, which is a blocking tariff that makes the import economically unviable and actually prevents imports altogether. To deal with the shortage, the Minister of Finance proposes to cancel the customs duty for a period of about three months, until October 7, 2023.
The abolition of the customs duty is not expected to cause a loss in the state's tax revenues, since there is no such milk being imported into Israel, nor is it likely to cause damage to farmers who own dairy farms, since the dairies will continue to buy the existing milk quotas at the existing target price.
Lior Simcha, CEO of the Milk Producers' Organization, said: "The state made it clear again this evening that it is forbidden to make agreements with it. After countless discussions with the Minister of Finance, the members of the Budget Division, and the Economic Committee, in which we made clear to all parties the importance of maintaining local production, the Treasury once again spits in the face of the farmers and prefers the producers in Poland, Hungary, and other Eastern European countries over Israeli production while enriching the pockets of the importers. The Minister of Finance is giving Israeli industry approval to switch to manufacturing abroad or, alternatively, to divert lines to products that are not under supervision. Instead of taking care of the weak, they are once again taking care of the tycoon importers."


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