As a result of the decision to increase value added tax from 15.5% to 16.5%, he price of basics has gone up along with just about everything else, from real estate to a standard loaf of bread.

An apartment costing NIS 1.155 million yesterday is now NIS 1.165 million today. Gasoline went up at midnight from NIS 6.14 a liter to NIS 6.35. 3% milk from NIS 5.93 to NIS 5.98, bread from NIS 4.59 to NIS 4.63, challah from NIS 5.00 to NIS 5.05, a dozen eggs from NIS 11.95 to NIS 12.05, and a 15% shemenet (sour cream) from NIS 2.07 to NIS 2.09. Most vehicle prices have increased from NIS 1,000 to NIS 3,000.

While the government is pleased, aware the increase will generate a significant amount of tax revenue, retailers, manufacturers and others are not smiling, especially people in the tourism industry, who point out that at a time while they are trying to remain competitive, to encourage travelers to spend tourism dollars in Israel, the government takes a step to drive the badly-needed tourists away. The move many Israelis insist will also compel them to travel to Cyprus, Turkey or other areas for their summer vacation rather than having to pay the price of vacationing at home.

(Yechiel Spira – YWN Israel)