Israel plans to scrap plastic tax that doubles prices of many items
Israel's new finance minister has said he plans to abolish the state tax on single-use plastic plates and cutlery, according to multiple media reports. The decision was first announced by Bizarel Smotridge after he was sworn in on December 29. He is part of the coalition government led by Benjamin Netanyahu. Netanyahu returned as prime minister on Thursday following a vote of confidence in the Knesset.
According to Reuters, Smotrich wants to repeal the plastic tax, not least in response to opposition from ultra-Orthodox Jewish parties, which have considerable representation in the ruling coalition. Citing a November 2021 parliamentary report, the news outlet said ultra-Orthodox households use three times as much plastic utensils as the rest of the population because they typically have "large households, low incomes and many without dishwashers".
In November 2021, Israel began taxing single-use plastic utensils, cups, plates, bowls and straws at a rate of 11 ILS ($3.12) per kilogram. Manufacturers pay taxes to the state and, in turn, pass on higher costs to goods, leaving consumers to ultimately bear the cost. According to the Jerusalem Post, the tax nearly doubled the prices of many items.
