The government has already approved an increase in VAT to 18% from January 1, 2025 as part of a special budget adopted after the war.
Israel’s Ministry of Finance is considering a plan to raise VAT from the current 17% to 18.5% if required. The government has already approved an increase in VAT to 18% from January 1, 2025 as part of a special budget adopted after the war.
Finance Minister Bezalel Smotrich today presented his plans for the 2025 budget, which include a freeze on public sector wages, tax brackets and benefits and pensions, a higher income tax on the lowest tax bracket, and a range of savings and simplification. there are painful measures. the total amount of 35 billion in government ministries and civil service. However, he did not mention the proposed VAT increase.
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Smotrich’s 2025 budget plan: Tough measures to pay for war
Smotrich promised to reduce the fiscal deficit to 4% of GDP. The fiscal deficit stood at 8.1% of GDP at the end of July 2024, although Smotrich insists the deficit will fall to the government’s forecast of 6.6% of GDP by the end of 2024.
Globes, Israel business news – en.globes.co.il – published on September 3, 2024.
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Slicing the public pie credit: Shutterstock
