The prices of a large selection of imports, mainly expensive durables, will fall by as much as 20 percent, beginning on January 1 as Israel complies with tariff agreements it has with the European Economic Community (EEC), the Finance Ministry announced Sunday.
The Ministry warned, however, that if the price drops trigger an unrestrained spending spree by the public, additional taxes and levies would be imposed on the purchases. According to the Treasury, the cumulative effect of the reduced prices of imports would be a one percent fall in the cost-of-living index.
Israel has reciprocal agreements with the EEC calling for significant tariff reductions on industrial products. They have been in effect for several years but the largest is due at the start of the new year. Israel will benefit mainly in the area of agricultural products which will be able to compete favorably on the European market, even with produce from EEC countries. The biggest drop here will be in the price of family-size cars which will fall by about 18 percent.
REMINDER: There will be no Bulletin dated January 1, New Year’s Day, a postal holiday.
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