A new bill seeks to transform Israel into a free trade zone by applying various reforms to customs fees and other tariffs, Israel Hayom learned Monday.
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The Israel Free Trade Zone bill, sponsored by Likud MK Ariel Kellner and lobbied for by the Our Interest advocacy group, aims to "transform Israel into a modern, progressive economy and a significant player of the global economy."
The legislative proposal names simplifying customs regulations as its main objective. It further aims to reduce the levies imposed on each imported item to no more than 8% and remove unnecessary market entry barriers and regulatory requirements.
Kellner plans to present the bill for its preliminary Knesset reading in the next few days.
"The bill will transform the Israeli economy so that it will benefit ordinary citizens, who are underrepresented by advocacy groups," Kellner said.
"The removal of market entry barriers and the new customs policy will reduce the price of products, especially of staple foods. This will ease the financial burden on everyone, especially those from the lower [socioeconomic] echelon. This policy will eventually make local production more efficient and will increase the wages of the local workers.
"The bill defines Israel as a free-trade country. It relies on the international standards and reducing import tax as much as possible," he explained.
Under the proposed law, customs tariffs will be gradually reduced by 10% each year until each item is subject to 8% tax at most. According to the bill, higher customs fees will only be possible through a decree by the Knesset Finance Committee and only following the finance minister's recommendation.
"The existing cost of living and low workforce productivity affect all of our standard of living," Our Interest CEO Elad Malka said. "The bill presents Israel with an opportunity to become a modern, progressive economy and a significant player of the global economy."
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