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10 Sivan 5772 - May 31, 2012 | Mordecai Plaut, director Published Weekly
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NEWS
MK Rabbi Gafni Meets With Food Processors to Lower Food Prices

By M. Green

"Every tax reduction of raw products will be transmitted directly to the consumer," Dan Propper, chairman of Osem, promised the chairman of the Knesset Finance Committee. Rabbi Moshe Gafni met with him and the company's CEO in the context of a series of tours which Rabbi Gafni has scheduled with the heads of the leading food companies in order to explore the possibilities of lowering food prices for the consumer and getting help from the companies to formulate relevant legislation that will help the public.

Propper told Gafni that the VAT on food in Israel is considerably higher than the average throughout the world. Most countries, in fact, have reduced taxes on food products because of the major proportion of food in the overall family budget of the lower percentiles of the population. VAT on food is an antisocial and inequitable tax, he pointed out, calling upon Gafni to take action within the government to reduce this discriminatory tax.

Among other subjects discussed was that of reducing taxes on raw material, alongside similar tax cutbacks in processed foods imported to Israel. Rabbi Gafni received the Osem chairman's promise that every such reduction of customs applying to raw materials used by Osem would be handed directly on to the consumer.

Click here for the Hebrew original.

 

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