The Marker, Hadar Horesh, 18.05.2020
The Financial Justice Association has approached the Minister of Economy's Advisory Committee to reject the recommendation to impose a levy on cement imports. The charge in charge Danny Tal, two weeks ago, submitted to the Minister of Economy a recommendation to increase import duties on cement imported from Greece and Turkey, claiming that much of the imports were made under the conditions of the dumping - that is, a marketer in Israel at prices below the price of cement sold in the country of origin.
Similar recommendations made by Tal a year ago were rejected by the Advisory Committee and by the Minister, who decided to impose a nominal levy of 0.25% and ordered the continuation of the inquiry into the import of the flood. The cement market in Israel is dominated by Nesher Monopoly owned by US billionaire Len Belvetnik. Following the entry of a competing import four years ago, cement prices were reduced by 30% and Eagle lost about half of its market share. According to the commissioner, Nesher presented him with financial data according to which she was hit for a loss following the competition. However, data released by Nesher to investors as part of a fundraising show that the company continues to make profits of hundreds of millions of shekels as a result of its control of the market.
In the letter, the association warned that the levy is expected to raise the cost of living in Israel and that there is no reason to help the monopoly by raising prices and damaging competition.
"When taking into account the expected damage to competition, the cost of living and housing in Israel, the huge economic crisis in which the State of Israel is suffering due to the Corona epidemic and the monopolistic status of Nesher - it is clear that, alongside the existence of the alleged flood, these considerations must be given considerable weight if Not essential, when you come to recommend the minister your decision. This is not the time to impose on the public another financial burden of hundreds of millions of shekels a year, "the association wrote.
The committee's recommendations will be submitted to Minister of Economy Amir Peretz in about two weeks. The decision on the flooding should be made by the Minister of Economy and Finance Minister Israel Katz, and receive the approval of the Knesset Finance Committee.