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Open Skies – not only in flight fares

Competition is good for the economy, After the cellular reform last year and the Open Skies agreement , now is the time for the government to expand competition to other areas and deepen it by exposing the local market to global competition. Abolishing custom taxes will make the local market more efficient and will lower the cost of living in Israel. After the government announced it would start a number of significant processes which would increase competition in the Israeli economy, such as the Open Skies agreement, it ought to deal with additional obstacles which are weighing down the economy and raising the cost of living. One of the main challenges is opening the local economy to global competition; as of now, the government itself is responsible for a large part of the market’s obstructions – raising the level of prices above the average of the developed economies – therefore, the solution is changing government policy. The change should be abolishing any tax on import which isn’t on energy, private vehicles, alcoholic beverages and tabacco

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Dr. Yitzhak Klein

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