Prime Minister Benjamin Netanyahu has signed a revision of the new postal rates as part of a recovery plan for the Israel Postal Company Ltd.. At the same time, Ministry of Communications Post Supervision Division senior director general Yigal Levi delivered the revised license to the Postal Company. The license stipulates the new method of operation to be used by the company, which iin effect amounts to a revolution.
The recovery agreement includes a number of stages, including a rates revision, a new license, and a financing arrangement to be signed in the immediate future. The rates are being revised according to the Reich Committee's recommendations, which were adopted several months ago by Minister of Finance Yair Lapid and Minister of the Interior Gilad Erdan.
The rates revision is one part of the general reform conduced in the Postal Company aimed at helping the company to recover and to improve service, which will make the company economically stronger and halt the current situation, in which the state has stopped payment of the Postal Company's debts. The rates revision will add NIS 150-180 million annually to the company's revenue, and assist the company's overall recovery plan.
The Ministry of Communications said that the average monthly household expenses for mail services were only NIS 2, meaning that the rates increase will amount to only a few agorot. The revision applies solely to postal services.
The price of a stamp (an ordinary letter with the lowest postage) will rise from NIS 1.53 to NIS 1.86 (the rates do not include VAT). The cost of sending an ordinary registered letter of the lowest weight will rise from NIS 8.21 to NIS 10.02.
The cost of sending an international letter to the US of the lowest weight will rise from NIS 5.61 to NIS 8.27.
Published by Globes [online], Israel business news - www.globes-online.com - on January 29, 2015
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