In an effort to increase revenues, the Government announced today a sharp rise in customs duties and excise taxes on a variety of consumer goods and automotive spare parts. At the same time, the Treasury decided to ease import restrictions on what it considers luxury items for which higher customs duties are normally imposed.
An additional 10, 000, 000 pounds ($5, 600, 000) in annual revenue is expected to result from the increased taxes, it was estimated here. A Treasury spokesman expressed the hope today that the increases would not affect the cost-of-living index more than one quarter of point.
The Cabinet Economic Committee approved the increased taxes during a night-long session last night, shortly after the Knesset, Israel’s Parliament, adjourned for a ten-week recess. The Government thus avoided an immediate reaction from Knesset members on the floor of the House.
The higher levies will affect the local prices of such items as bottled cooking gas, cooking ranges, food mixers, electric shavers, automobile radios, automotive spare parts, pianos, alcoholic beverages and heavy construction equipment.
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