Last week, Israeli Prime Minister Bibi Netanyahu gave up an idea to close a 1.8 billion shekel ($450 million) budget gap by taxing fresh fruits and vegetables at 16.5 percent. The tax proposal was shot down by a combination of interests representing the poor, the farming sector and good nutrition.
According to Ynet, 62% of adult Israelis are overweight or obese, and the tax would further encourage the poor to buy unhealthy manufactured products rather than fresh produce.
Haaretz reported that without the produce tax, Israeli bead counters will have to look to income taxes to possibly make up the shortfall.
Another Haaretz analysis of the proposed solution – lowering the income tax on Israel’s wealthiest while raising it on the middle class – is here.
The Ynet article, published when the produce tax was first proposed in May, looked into other options to levy on food and spoke to the chairman of the Israeli Ambulatory Pediatrics Association:
“Most western countries are discussing taxing high-sugar, high-calories products in a bid to lower their consumption. In Israel, in a questionable, destructive decision, the government is interested in taxing the healthy foods, whose consumption is vital for children’s health,’ said Prof. Mati Berkovitch, the associations’ chairman.”
(Above: Apples at the Carmel Market in Tel Aviv. Photo by Daniella Cheslow)
Author: Daniella Cheslow
Daniella Cheslow grew up in a car-dependent suburb in New Jersey, where she noticed strip malls and Wal-Marts slowly replacing farmland. Her introduction to nature came through hiking trips in Israel. As a counselor for a freshman backpacking program at Northwestern University, Daniella noticed that Americans outdoors seemed to need to arm themselves with performance clothing, specialized water bottles and sophisticated camping silverware. This made her think about how to interact with and enjoy nature simply. This year, Daniella is getting a Master’s in Geography from Ben Gurion University of the Negev. She also freelance writes, photographs and podcasts. In her free time, she takes day trips in the desert, drops off compost and cooks local foods like stuffed zucchini, kubbeh and majadara. Daniella gets her peak oil anxiety from James Howard Kunstler and her organic food dreams from Michael Pollan. Read more at her blog, TheTruthHerzl.com. Daniella can be reached at daniella (at) greenprophet (dot) com.
I find this article astonishing. That any government would decide to tax the healthiest, least-processed foods available is very worrisome. I wonder what connections Netanyahu has with large processed food corporations.