The ushering in of the new Gregorian year, 2014, brings with it numerous price changes in Israel. Some examples include;

1. A 4.7% increase in public transportation

2. 5 agorot increase in a liter of gasoline

3. 3.4 – 3.7% increase in arnona property tax (this depends on where one lives. In some municipalities, the hike will be 6%)

4. A pack of cigarettes will cost 35 agorot more

5. Corporate tax will increase 25 – 26.5%

6. Capital gains tax will increase from 15% to 20%

7. Tax incentives from students will be cut from three years to one year (this is estimated to cost a student 5,000 NIS)

Experts ask just how much the new reality will cost an average family. This of course depends on the number of people and income but a family of 4-6 people will have 1,500 – 3,500 NIS less in its pocket as a result of the new realities.

Some of the Prices that are dropping

1. Decrease of 5% in water prices

2. Sweet cream and 5% white cheese down 20%

3. All other dairy products down 1.1%

· IDF soldiers in mandatory service are receiving a 22% salary hike. A non-combatant will receive 420 NIS monthly ($121) and a combat soldier 850 NIS ($244). (based on Bank of Israel closing rate of 31.12 [$1=3.47 NIS])

Experts explain that a family consisting of two working parents, one child serving as a combat soldier and two other children attending school will pay the following, based on the new monthly calculation:

The good news

· 13 NIS less for water

· 150 NIS increase for the soldier

· 16 NIS less for dairy products

The bad news

· 218 NIS less income due to cuts in tax incentives for students

· Lottery tax increase of 5%

· 30 NIS more monthly for bus fare

· 15 NIS more monthly for arnona

· 5 NIS more monthly for cigarettes

· 7 NIS more for gasoline

· 100 NIS less net income

The experts state this will result in a monthly reduction in income of 150 NIS, or 1,920 NIS annually.

(YWN – Israel Desk, Jerusalem)