The Bank of Israel revealed today (Sunday) that the actual price of disposable tools is 70% higher than the direct tax effect, which was imposed on them in November 2021.
According to a report in Kan News, in an examination conducted by the bank on the effect of the tax on prices, it was discovered that retailers took advantage of the tax on plastic - and raised prices beyond what was required, so that if the tax required an increase of 13 shekels per kilogram, in reality 22 shekels were raised.
In the findings of the examination, the Bank of Israel determined that the price increase above and beyond the tax obligations supports the possibility that the market does not operate in perfect competition, due to the structure of the supply side of the market or because the information available to consumers is incomplete.
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It seems that the difficulty for consumers to identify the increase derived from the tax stems from the fact that it is determined based on weight, which is difficult for the consumer to estimate - which facilitated the excessive increase in price.
United Torah Judaism Chairman MK Yitzhak Goldknopf said in response to the Bank of Israel publication: "Today we received further proof that the scandalous one-time tax imposed by the outgoing Finance Minister must be immediately abolished.".
""It turns out that the big chains rode the wave, took advantage of the situation where citizens have no idea how much it's going to get more expensive - and raised the prices of single-use items by almost double the tax rate, which is already burdening Israeli citizens groaning under the cost of living.".
""Environmental quality is important, the fight against air pollution is important, and the way to address this begins with awareness and providing alternative solutions.".
