Senior figures in Israel's retail fashion and shopping mall industries have begun a campaign to halt the flourishing sales in online fashion goods. Source inform "Globes" that these senior figures have approached Minister of Finance Moshe Kahlon and asked him to cancel the VAT exemption on online purchases from abroad, in particular fashion and footwear items. Participating in the meeting were Castro Model Ltd. (TASE: CAST) CEO and controlling shareholder Gabi Rotter, Fox-Weizel Ltd. (TASE: FOX) CEO and controlling shareholder Harel Wizel and Nimrod shoes owner Oren Mandelblit. RELATED ARTICLES Castro to open stores in Canada Castro buys 50% of Urbanica for NIS 90m The retail executives protested the fact that Israeli companies are required to pay customs on imported clothes (6%) and footwear (12%) and must then collect 17% VAT on sales to consumers. This puts the Israeli retailer, they say, at a disadvantage against international players that can dispatch consignments to Israel that are exempt from VAT on items below $75, not including shipping. Kahlon has reportedly received similar requests from senior executives in the shopping mall sector including the CEO of Melisron Ltd. (TASE: MLSR) Ofer Malls. The executives are very concerned about the popularity of onmline sales from abroad especially on children's clothes and shoes. Surveys have found that 63% of online sales in Israel are from overseas. Published by Globes [online], Israel business news - www.globes-online.com - on January 5, 2017 © Copyright of Globes Publisher Itonut (1983) Ltd. 2017
