The tax burden jumped in 2019-2022 by 17.9% to NIS 372 billion

The tax burden in Israel, which is reflected in an increase in the volume of tax revenues, jumped by 17.9% in 2019-2022 to NIS 372.4 billion. This is shown by data that reached Maariv from the Knesset’s research center. These figures contradict the promises of the Minister of Finance Avigdor Lieberman Under which no new taxes or levies will be levied.

According to the data, the volume of direct taxes collected (mainly income tax) jumped between 2019 and 2022 by 19.9% ​​and amounted to NIS 201.4 billion. Indirect taxes, including VAT and customs, increased by 15.2% to NIS 164.1 billion during the same period. It should be noted that during that period, as well as in the state budget for 2021-2022, direct taxes (especially income tax) did not increase, .

At the same time, following pressure from the social parties (Labor and Meretz), new indirect levies were added, such as a tax on the use of disposable utensils and a congestion charge. In the coming days, it will be decided to increase the purchase tax for housing investors from 5% to 8%. Also, there is an intention to tax revenue for Airbnb apartments. The plan to collect a surcharge for a doctor’s visit has been suspended at this stage.

Avigdor Lieberman (Photo: Mark Israel Salem)

ח״כ Eli Cohen, Who served in the previous government as Minister of Economy, referred to the state budget and especially to the tax payments included in the budget. According to him, during the Likud’s rule, VAT was reduced from 18% to 17%, corporation tax was reduced from 27% to 23% and the tax on industrial companies operating in the periphery was also reduced. Turkey’s plan to raise the tax burden, “Cohen claims.

“The state budget does not include incentives for economic growth, on the contrary, the budget is based on significant tax increases that will reduce growth and slow down the decline in unemployment.” According to the former Minister of Economy, “The sharp increase in tax revenues came mainly at the expense of the weaker sections of society and does not include incentives for local and international investments in Israel.


Source: Maariv.co.il – כלכלה בארץ by www.maariv.co.il.

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