New Tax Authority Rules Allow Small Companies to Sell Food to Gaza Strip
The Israeli Tax Authority announced new regulations on Thursday that enable smaller companies to sell food products to the Gaza Strip. Previously, only large food companies and retailers defined by law as major suppliers were permitted to supply Gaza, with sales last year reaching 344 million shekels for food companies and 277 million shekels for large retailers. Under the new rules, companies with annual sales between 10 and 25 million shekels over the past three years can also apply to sell food to Gaza, significantly expanding the pool of eligible suppliers beyond the roughly 30 large companies previously licensed.
This change follows Israel's commitment as part of the Gaza ceasefire agreement to allow the daily transfer of 600 trucks carrying food and related products. Notable participants so far include the Victory supermarket chain, which sold 100 million shekels worth of goods to Gaza in one month during the first quarter. The new minimum annual sales thresholds vary by product category: 25 million shekels for food and beverages, 24 million for hygiene products, 11 million for clothing and footwear, and 10 million for agricultural produce.
The products allowed under these regulations exclude essential food staples like flour, sugar, and oil, which are supplied by aid organizations, focusing instead on luxury and international brand items such as Pringles, Oreo, and Pepsi. Applicants must meet strict criteria including having a logistics infrastructure with a distribution center operating in Israel for at least one year, committing to purchase products themselves, and receiving payment only from authorized Gaza traders. They must also ensure ownership and responsibility for goods until delivery to Gaza and maintain consistent drivers during transport.
The Tax Authority emphasized that these stringent requirements address security and economic challenges, including the risk of goods diversion to terrorist groups and difficulties in supervision. The approval process involves quality assessments based on logistics, fleet, certifications, and experience, followed by a comprehensive security vetting including physical site inspections.
Among companies previously licensed to supply Gaza are Mehadrin (controlled by Idan Ofer), which sold about 60 million shekels worth of agricultural products in the first quarter, as well as Rami Levy, Carrefour, Super Sapir, Hatzi Hinam, and Maayan 2000. Other approved suppliers include Neto, Wilipod, Bikurei Sadeh, Diplomat, Shestovitz, and Sheniv. Businessman Eban Newman, formerly associated with Max Stock, is also a notable figure in Gaza goods supply.
