Importing to Israel means bringing something into the country from another country. The import sector in Israel plays a vital role in the economy, providing a wide range of goods and services to the Israeli people. This sector is responsible for delivering a wide range of products and services, including raw materials, intermediate goods, and finished products. The sector also plays an important role in providing foreign investment and technology to the country. This has helped to create a strong and diversified economy.

This sector has also provided a significant boost to the country’s GDP, as well as employing many people. To further enhance the economy through its import sector, the authorities in Israel are providing many tax-related breaks and incentives in the nation. It learns about taxes and tariff breaks applied to imports in Israel are discussed below. 

Types of import taxes

Israel is a country that is known for its strong economy and commitment to maintaining a healthy business environment. This is evident in the fact that the country has a comprehensive system of duties in place. These duties are designed to protect the domestic economy and promote fair competition between domestic and foreign businesses. Following are the five main types of taxes.

Value added tax

The first type of duty is the Value Added Tax (VAT). This is a consumption tariff that is applied to all goods and services imported into the country. It is currently set at 17% and is one of the highest VAT rates in the world. 

Excise tax 

The second type of tax is the Excise Tariff. This is a tax that is imposed on certain imported goods such as alcohol, tobacco, and fuel. The rate of this levy varies depending on the type of goods being imported. 

Custom duty

The third type of duty is Customs Duty. This is a tax that is imposed on imported goods based on their value. The ratio of this levy can vary depending on the type of goods being imported. 

Anti-dumping

Another type of levy is the Anti-Dumping Duty. This is a tariff that is imposed on imported goods if they are sold at a lower price than their domestic counterparts. 

Countervailing duty 

Finally, the fifth type of tariff is the Countervailing Duty. This is a tax that is imposed on imported goods if they are subsidized by the exporting country. 

Import taxes rates

Israel’s import tariff rates are among the most affordable in the world, making it an appealing destination for enterprises seeking growth. This is especially true for those wishing to import automobiles, heavy machinery, electronics, food, oil, and chemicals.

The tax rate for vehicles is 10%, while the rate for heavy machines is 15%. Electronics are subject to a rate of 17%, while food, oil, and chemicals are subject to a rate of 18%. 

Importing tobacco

The ingress of tobacco is a highly regulated and taxed activity. The government has set a high taxation rate on the shipping of tobacco products to discourage the consumption of tobacco and to raise revenue for the government. This tariff level is currently set at a ratio of 80% of the value of the tobacco product being imported. 

Importing alcohol

The taxation level on alcohol purchases in Israel is set at a flat rate of 80%. This rate applies to all types of alcohol, including beer, wine, and spirits. This percentage is designed to ensure that the import of alcohol is done responsibly and following the law. Additionally, the taxation degree helps to ensure that the revenue generated from the import of alcohol is used to fund public services and other government initiatives.