The State Audit Committee, headed by Acting Chairman MK Mickey Levy, held a follow-up discussion today on “Aspects of the Government’s handling of Imports,” in light of the State Comptroller’s report for 2025. The discussion revealed significant gaps between government actions to remove barriers and the on-the-ground feeling that the cost of living is only soaring.
Acting Committee Chairman, MK Mickey Levy: “The citizens of Israel are buckling under the burden. Since 2011, the food price index has risen by 23% and the fruit and vegetable index by 27%. The reforms in standardization and imports did not justify the hopes, and the high costs ultimately rolled over to the consumer. A situation has been created where importers have exceptional profitability due to concentration, and the public is paying the price.”
Director at the State Comptroller’s Office, CPA and Adv. David Bar, presented the situation of market concentration: “In the food market, only three suppliers control 85% of the market share in 20 different categories. In the cosmetics sector, the five largest companies hold 53% of the market. However, there are bright spots like in pineapples, where opening the market has lowered the price to a fair level.”
Amit Goldman, Industry and Trade Coordinator at the Treasury’s Budget Division: “Our goal is unequivocally to lower entry barriers so that the industry will be competitive. The more trade agreements we have and the more barriers we lower, the lower the cost of living will be at the end. We are already seeing signs of price decreases in the cosmetics sector, particularly in toothpaste, where the moves are beginning to show their effects.”
Dan Yona Amadi, Senior Trade Policy Manager at the Ministry of Economy: “We are working to make information accessible to importers through a dedicated information center and are monitoring approximately 150,000 products. The equation is clear: the lower the regulatory burden, the greater the incentive for new importers to enter the field and compete with existing players.”
Rinat Bachar, Cosmetics Department Manager at the Ministry of Health: “It should be remembered that the cosmetics reform came into full effect only in April 2025. Until then, licenses were issued according to the previous order, so it is too early to assess at this stage whether the reform has succeeded in lowering prices. However, in terms of removing barriers, the move was made and the burden on importers has decreased.”
Pnina Oren Shnidor, Director of the National Food Service at the Ministry of Health, added: “Our role first and foremost is to protect public health, but we were full partners in the ‘What’s good for Europe is good for Israel’ reforms. Today, about 67% of products enter through the simplified European track.”
Eyal Shapira, Food Commissioner at the Competition Authority: “We are taking a strong stance against violations of the Competition Law. We recently imposed a fine of NIS 18 million on a large company and filed indictments against retailers who harmed competition. Enforcement exists and will be increased.”
David Chori, Senior Customs Manager at the Tax Authority: “In terms of taxation, most tariffs on goods, including cosmetics, have been reduced. The tax barrier has been almost completely removed in most of the categories in question.”
Shoshi Reshef Mor, Manager of Plant Protection Services at the Ministry of Agriculture: “Importing fresh agricultural produce is a complex regulatory event due to the need to prevent the entry of pests, but here too, in places where we have succeeded in opening the market, such as with pineapples, we have seen a dramatic price decrease for the benefit of the consumer.”
Shiri Neuman, Representative of the Regulation Authority: “We are dealing with horizontal regulation and burden optimization, but the problem is that we do not have unique authority to coordinate the event among all ministries, which makes a uniform systemic view difficult.”
Yaron Levinson, CEO of the Consumers’ Association: “We must tell the truth, no one believes there will be a price decrease, including the professionals. The reforms may have eased things for importers, but they are not trickling down to the pocket of the small citizen. The problem is that supervision on the ground is non-existent.”
Yael Shechter-Sitman, Lobby 99: “The Comptroller’s report proves that the import reform in its current form is insufficient. We live in an extremely concentrated market. New suppliers do not truly have the ability to contend with the power of the large players, and as long as the concentration is not dismantled – the price will not decrease.”
Lior Levi, Chairman of the Importers Forum at the Manufacturers Association: “Imports are not the be-all and end-all, nor a magic solution. The producer output index has soared, and most cosmetics suppliers are importers anyway. The problem is not just competition but production costs.”
Elisha Yifrach, Israel Export & International Cooperation Institute: “The state cannot blame only businesses when it itself raises prices through minimum wage, training, Arnona (municipal property tax), and rent. The picture must be viewed holistically.”
Dalia Yarom, Deputy Director of Standardization at the Standards Institute: “Adopting European regulation without the appropriate enforcement and supervision system that exists in Europe could lead to harm to public health and safety in Israel.”
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