Finance Minister Bezalel Smotrich (Religious Zionism) on Thursday announced at a press conference that he will temporarily cancel the import tax for imported milk.
Currently, there is a 40% customs tax on imported milk, rendering imports not financially worthwhile.
However, in order to manage the milk shortage, Smotrich signed an order canceling the import tax for a period of approximately three months, until October 7, 2023.
At the same time, the cancellation is not expected to cost the government revenue, since there are currently no such milk imports to Israel. It is also not expected to cause damage to dairy farmers, since the milk production plants will continue purchasing their existing milk quotas at the current prices.
"I have made an historic decision," Smotrich said. "I will sign on an order canceling, for three months and until the holidays, the customs tax on imported milk."
"I am doing this with great care and the appropriate responsibility, in order to eliminate the milk shortage on the [grocery store] shelves, which the citizens of Israel have experienced in the past weeks. This is the most appropriate step to eliminate the shortage. In recent years, we have seen shortages of milk on the shelves - it is the most popular product in Israel. This is a situation that we cannot accept in the summer, when children are on vacation and ahead of the fall holidays.
"And so, today, we are changing this reality."
Smotrich added, "I have more news for the farmers: I intend to expand the quota of foreign workers for agriculture and to lower their cost, because I am aware of the existing problems and of the enormous difficulties for agriculture in Israel, since there is a shortage of manpower in agriculture. We are also investing hundreds of millions in direct support for farmers. I believe in Israeli agriculture and I stand beside the Israeli farmers."