Kahlon cancels import duty on shoes

Finance Minister Moshe Kahlon has canceled the 12% customs duty imposed on shoes. Cancellation of the tax will cost the state coffers about NIS 188 million in lost revenues.

Kahlon signed the cancellation order after conducting a hearing with the Israel Tax Authority on the matter, which also included baby clothing and accessories.

“We are talking about a further step in the implementation of our family tax-cut plan,” Kahlon said. “Canceling the import duties will bring down the price of shoes in Israel and is good news for consumers and families.

“We see the huge gaps in prices between Israel and abroad, and we are not prepared to reconcile ourselves with them. We will carry on with our policy of cutting import duties in all sectors that won’t harm domestic industries. We’ll lower prices for consumers and make life easier for working families.”

It remains to be seen whether the stores will pass on the savings to consumers.

New Hamashbir Lazarchan Ltd. department-store chain owner and CEO Rami Shavit told Globes: “Starting Sunday we will lower our prices even though we paid import duties on the merchandise currently in the stores. We will sell the new merchandise that has not yet arrived at even lower prices because of additional cuts.

“We welcome Kahlon’s measure and are happy he has canceled this distortion that for years has harmed our ability to compete with online sales. An average Israeli family buys eight to 14 pairs of shoes per year, so this is a major saving for their pockets.”