Thursday, February 23, 2012

Bethel Finance:Israel expected to adopt proposals to increase competition in vehicle sector

www.bethelfinance.com
The conclusions of a public inquiry into competition in the vehicle sector will be adopted, Transportation Minister Yisrael Katz plans to announce today. But the minister will now establish a new committee to handle the recommendations' execution.

The chairman of the original committee, Yaron Zelekha, had urged that the recommendations be enacted into law more directly.

The new committee will have people from the transportation and finance ministries, the Antitrust Authority and the Tax Authority. This panel will have 60 days to submit a working plan.

The reason, Katz explained, is that Zelekha's recommendations touch on a wide range of knotty issues, including tax and the dissolution of business groups, which are not in the jurisdiction of the Transportation Ministry.

But one recommendation will be implemented without delay: Israelis will be able to personally import any car that meets U.S. standards, even if made outside the NAFTA treaty countries (the United States, Mexico and Canada ). At present, Israelis can only import cars that either meet European standards or were made in NAFTA countries. Thus Israel will now have two sets of standards.

The committee's ultimate goal is to make cars, spare parts and servicing more affordable, and to bring the public a wider selection. Zelekha's team found that prices in the car market are by and large not set by the free market: They're fixed.

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