The Postal Authority will become a government company named “Israel Post” today, and will charge VAT.
Prices of postal services and products will increase today by 9-12%. The price hikes follow the decision to turn the postal authority into a government company named “Israel Post”, a move that requires it to add VAT to its prices.
Israel Post CEO Avi Hochman said the company would not charge customers the full VAT rate. "Israel Post today became a government company, operating in a competitive business environment and as such it must offer customers competitive products and prices. Private customers will therefore benefit from prices which will rise only as a result of adjusted VAT rates, while licensed businesses that qualify for VAT rebates will benefit from a real reduction in costs of services.”
The new rates are as follows:
- Regular letter: NIS 1.50 (up from NIS 1.30)
- Special letter up to 100gr: NIS 2.50 (NIS 2.20)
- Parcel up l kg weight: NIS 19 (NIS 12)
- Parcel of 1-20 kg weight: NIS 23 (NIS 15)
- Regular telegram up to 10 words: NIS 29 plus NIS 0.25 for every extra word (NIS 26 plus NIS 0.20)
- Registered letter: NIS 5.90 (NIS 4.90)
- Aerogramme: NIS 1.50 (NIS 1.40)
- Bulk mail service, including sorting and postal code addressing for items up to 15 gr weight (for first 100,000 items): NIS 1.07 each (NIS 0.98)
Published by Globes [online], Israel business news - www.globes.co.il - on March 1, 2006