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      Archive: 8/2/2011
      11:44
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      News Brief

        8/2/2011, Av 2, 5771

      Minister: Cut Tax on Staples, Daycare, Senior Drugs


      Industry, Trade and Labor Minister Shalom Simchon said, Tuesday, that the value-added tax (VAT) on basic food items should be halved to eight percent. Interviewed by Kol Yisrael government radio, Simchon said the tax should also be lowered on daycare for infants and medicines for senior citizens.

      The Ha'atzmaut (Independence) party lawmaker made the recommendations to Finance Minister Yuval Steinitz during the committee's hearing on dairy prices. Simchon said the reduction of VAT would result in more buying power for consumers, especially in the middle class.