In preparation for the Tishrei holidays, the Ministry of Finance published yesterday (Wednesday) its intentions for public notice regarding the reduction of customs duties on olive oil. This reduction is expected to result in a significant decrease by incentivizing imports to compete with local exports.
As part of the regulations prepared by the Tax Authority, the customs duty will be reduced from its current level of 6% + 2.29 NIS per kilogram to a lower rate of 1.2% + 0.44 NIS per kilogram. Concurrently with the reduction in customs duty, the Ministry of Finance will provide direct support to the olive industry. The proposed directive is published in coordination with the Ministry of Agriculture and the olive trade.
In order to provide a response to the public during the holidays of Tishrei, a short-term directive was published with immediate effect, reducing the tax by October 9, 2023. Simultaneously, an additional directive was issued, for comments within 21 days, for a steady reduction in tax. The Ministry of Finance clarified that the reduction is the same in both directives.