The Minister of Finance, Avigdor Lieberman, announced today, additional steps to deal with the cost of living, in addition to the plan announced in February. As part of the new measures, the reform in agriculture will be implemented and tariffs on fruits and vegetables will be reduced immediately; Assistance for working citizens will be increased while doubling the supplement to the labor grant for low-wage earners; Aid grant will be given to businesses affected by the omicron wave and steps will be taken to increase competition in the food market. The measures continue the Finance Minister’s policy of lowering the consumption basket and increasing competition in the Israeli economy.
Finance Minister Avigdor Lieberman: “As we promised, we will continue to work to increase the disposable income of Israeli citizens and reduce spending. The agricultural reform that is being launched will significantly reduce the prices of fruits and vegetables and bring a reduction in the price to citizens. We do not forget the business owners, we will continue to help businesses that have been affected by the Corona virus and we will stand by them in times of crisis. “
As part of the new measures to reduce the cost of living the implementation of the reform in agriculture: immediate reduction of tariffs on fruits and vegetables. As part of the reform in agriculture approved as part of the state budget for the years 2021-2022, the Minister of Finance today (Tuesday) signed in coordination with the Minister of Agriculture Oded Forer, the order to reduce tariffs on fruits and vegetables. The order includes immediate abolition of customs duties on a variety of fruits and vegetables (avocados, garlic, peas, beans, figs, pineapples, berries, mushrooms and more).
The remaining caps on fresh, frozen and preserved fruits and vegetables will be gradually reduced over five years to maintain local agriculture and allow for an adjustment period. Reducing tariffs is expected to increase the level of competition in the industry and lower fruit and vegetable prices significantly. The total savings for the Israeli consumer are expected to be about NIS 820 per year for each fully matured household.
Along with the reduction of tariffs, the reform includes a broad support package for the agriculture industry at a cost of hundreds of millions of shekels per year: direct budget support for each farmer per cultivated dunam; Expanding tax benefits through the Capital Investment Encouragement Act; Support for marking local produce; Reduction of inputs to the farmer (pesticides, etc.); And an investment of over two billion shekels for innovation and raising productivity in the agriculture industry.
In addition, investment and innovation grants will be awarded for the purchase of innovative equipment and machines, collaborations with startups and more. In order to implement the reform, the Minister of Finance signed an order to reduce customs duties on fruits and vegetables, and the Minister of Agriculture is promoting an amendment to the Plant Protection Regulations.
The other step is to increase assistance to working citizens: doubling the supplement to the labor grant for low-wage earners. The average supplement amount is NIS 1,600 per year per employee (instead of NIS 800 per year) and can reach up to NIS 3,400 for single mothers with three or more children. About 300,000 workers eligible for a work grant (negative income tax) will receive a one-time 40% supplement to the work grant in 2022 – doubling the supplement announced as part of the cost of living plan in February. And as
Announced in February, in order to facilitate those also eligible in terms of cash flow, advances will be paid in July for the estimated grant. In order to implement the move, legislative amendment will be promoted.
Third, an aid grant for businesses affected by the Omicron wave: an integrated grant for businesses with a turnover of up to NIS 60 million – which includes fixed expenses, including property tax expenses. The amount of the grant will be between NIS 3,000 and NIS 600,000 per business. The grant will be given to businesses affected by the omicron wave in a way that led to a decrease in turnover of over 35% in January-February 2022 compared to January-February 2019. In order to implement the move, legislation will be promoted.
Fourth, increased competition in the food market. Reducing the cost of living by examining measures to reduce concentration in the food market, including: tightening conditions for purchases, mergers and distribution arrangements of large food suppliers, restrictions on exclusive imports, and imposing a ban on harm to parallel imports. In order to implement the move, the necessary legislative amendments will be examined.
Referring to the reform of agriculture, the Minister of Agriculture, Oded Forer, said: “After intensive discussions and negotiations, the moment has come when decisions must be made. We have a commitment to Israeli agriculture and all Israeli citizens. This reform is also committed to saving Israeli agriculture. “We have a commitment to lower prices for Israeli citizens who need to take out a mortgage to buy fruit in the summer.”
“We are doing what they have not done for twenty years. Direct consumption in agriculture, investment grants, strengthening the country’s produce and also opening up to competition. On the Gaza Strip, the Arava, the Galilee and the Golan Heights, “said Forer.
Chairman of Torah Judaism MK Moshe Gafni: “The most failed finance minister in the history of the State of Israel, Yvette Lieberman, is completely insensitive. He has no problem inflicting fatal damage on Israeli farmers and agriculture. It will also probably not lower prices as has been proven in the past. “Lieberman does the easiest thing that stems from laziness, dysfunction and economic understanding.”
MK Yaakov Margi said: “An opaque finance minister is arrogantly detached and acts out of revenge and interests. Established a committee on behalf of which drew biased unilateral conclusions without hearing the position of the farmers. “Abandon Israeli agriculture in favor of individual importers who will continue to enrich the public. Only a post-Zionist government abandons agriculture.”
The Deputy Minister of Economy, MK Yair Golan, was also criticized at home: “It is a pity that the Ministry of Finance is acting against Israeli agriculture and ultimately against the Israeli consumer. Reform is not done in vain and we are done, but in a responsible, thorough and in-depth manner together with the farmers. It seems that the Ministry of Finance and the Ministry of Agriculture are working for the Turkish farmer and they should return to Israel. “
Amit Yifrach, chairman of the Israel Farmers’ Association and secretary general of the Moshavim movement, said in response: “Lieberman is working to make Israel a state without agriculture and without an independent capacity for self-production and food security. In the war against farmers, there is one loser and he is the consumer. “
‘It’s all one big smoke screen! Lieberman works to turn Israel into a country without agriculture and without an independent capacity for self-production and food security. “All under the auspices of the cost of living, which has nothing to do with fruits and vegetables, but mainly with housing, electricity, property taxes, and fuel paid for by the country’s citizens.”
“For the first time in history, the Minister of Agriculture simply does not exist and there is no justification for the Ministry of Agriculture to eliminate industries and strategic areas in the Gaza Strip and the Golan Heights. There is no staff work here and no long-term thinking,” Yifrach stressed.
“In the war against farmers, there is one loser and that is the consumer. Lowering tariffs and imports will not lower consumer prices, but strengthen the importers’ monopoly. This one-sidedness that will destroy thousands of farms and harm their consumers. “
The Yisrael Beiteinu faction does not apologize in light of the attacks, the chairman of the Finance Committee, MK Alex Kushnir: “It amazes me how many politicians are surrounded by one lobbyist who has become accustomed to unlimited power.”
“The goal of the reform in agriculture is one and only: to lower the prices of fruits and vegetables that have crossed all the red lines. The only lobby that runs Yisrael Beiteinu is all citizens of the State of Israel, who have to bear the illusory increase of 100% in 20 years. “Once and more than twice with the farmers. Enough with the distortions and smears.”