TEL AVIV (Mar. 4)
Premier Shimon Peres announced in Eilat today that Israel’s southern-most port town would become a free trade zone within the next two months.
When the arrangement comes into force in April, value added tax and employers taxes will be cancelled. Income tax and company taxes will be reduced, cheap fuel will be available to aircraft landing there, and special incentives will be available for entrepreneurs.
A customs station will be established on the road leading north from the city, the only route available by land, where Israelis returning to the rest of the country will be checked and charged duties on goods bought at duty-free shops in the town.