Shopkeepers and others in the small, informal industry say that they’re getting more money from government subsidies than they have in the past.
According to the Israel Insurance and Productivity Authority, in the first nine months of this year, the amount of subsidies that shops receive increased from a little over 1 percent of their revenues to 3 percent of revenues.
In addition, the industry’s total spending on subsidies rose by 20 percent to 2.3 billion shekels ($2.4 million) in 2015.
The rise in government subsidies is the result of an increase in the tax burden on the industry, said Yair Kagan, a shopkeeper in Beit Shemesh.
“When I opened my shop, the tax bill was 100 shekeles,” he said.
“But now I receive 3 percent.”
In recent years, the government has increased subsidies for the small and medium-sized businesses (SMBs), including for small and small businesses, to compensate for the decline in sales of clothing, footwear and accessories, as well as the shrinking number of small and middle-income households.
As of July, the Ministry of Finance, the Israeli Agency for Agricultural Products and the Agriculture Ministry announced that the government had increased subsidies to SMBs by 70 percent and to manufacturers by 20 times.
A spokesman for the Minister of Finance said that the increase was part of the government’s efforts to combat poverty.
He added that the subsidies will continue until they are completely exhausted.
But Kagan and others said that even if the subsidies were not used up, the price of the products that they sell is rising.
One woman, Yael Ziv, a member of the small-business group Kobi, said that she was working with a friend to sell her handmade shoes and had to make the most of the money she earned by selling them.
When she was younger, she was a shoemaker and had a family.
She sold her shoes at a loss because her father couldn’t afford to buy her shoes, she said.
Now she works full time and has no savings.
For now, she is going back to work as a retail assistant in the clothing store.
This is a very small industry, so the subsidy is good, she added.
It’s not going to last, she explained.
“I’m worried about the money.”
(L to R) Adel, the owner of the local clothing store, Adel and his wife, Eliya, at their store in Beite Haredi neighborhood, Tel Aviv, in this May 6, 2016 file photo.
Adel Ziv / AP file Sabbath Shalom, a clothing shop that is part of a chain of stores, is located on the outskirts of Tel Aviv and sells handmade clothing.
L to L to R: Adel (L), Adel’s wife, Yona, Elisa, and their two children, at the entrance to their shop, in Tel Aviv in this July 6, 2015 file photo.(L to M) Sabbath Tzedek, a store in the Beit Yosef neighborhood of Tel-Aviv that sells handmade shoes.
(M) Sammi, a woman who sells handmade jewelry and other merchandise in a shop in Beitser, a neighborhood in Tel-Tel.
Sammi Haim, a shopper at the shop, prepares to buy a pair of shoes at Sabbat Shalom in Tel Haifa, Israel, in May 2016.(M) A shopper works on his shoes in a shoebox in a store at Beit Tzedik in Tel Aviv.(M to R): Yona (L toR), Elisa and Yael Kagan at their shop in Tel Arad.
Adel Zvika / AP files Kagan, who was born in Be’er Sheva, said he has seen a steady decline in the prices he sells his goods for the last three years.
On the eve of the recent price hike, he bought a new pair of sneakers.
With the new price, he now makes around 3,000 shekelis ($300) a day.
Kaggel said that he had hoped to earn around 1,000,000-1,500,000 hekels this year.
Even though the average shoemaker makes less than 2,000 to 3,500 shekelies, the new increase is going to affect the profits.
Since the beginning of this decade, prices of sneakers and shoes have risen 10 to 15 percent, he said, but the prices of clothing have fallen by half.
And the higher prices of the new sneakers and sneakers have also hit the prices for the clothing.
“In the beginning, I was going to sell my shoes for the price I had earned for two years, but now I’m going to make less than 1,500 heke