The Ministry of Finance today announced that direct and indirect tax revenues totaled NIS 195.4 billion in 2010. Direct tax revenues rose 7.5% to NIS 93.1 billion in 2010 from NIS 86.1 billion in 2009. Indirect tax revenues rose 7.1% to NIS 97.1 billion in 2010 from NIS 86.6 billion in 2009.
The Ministry of Finance is counting the money flowing in, as home prices rose to new peaks and young couples could not afford a home. Higher home prices and an increase in real estate deals boosted land taxes 33% to NIS 6.9 billion in 2010.
The Ministry of Finance said, "The sharp rise in tax collection in 2010 was largely due to the differential in timing of transactions in 2009 and taxes collected on them in 2010." It added that a quarter of taxes collected came from the Tel Aviv area, where tax collection was 53% higher in 2010 than in 2009.
The Tel Aviv Stock Exchange (TASE) also rose to new heights in 2010, boosting capital gains taxes to NIS 2.9 billion in 2010, 16.4% more than in 2009.
The increase in tax revenues resulted in a narrowing of the government deficit in 2010. For the first time in two years, the deficit narrowed to 3.73% of GDP in 2010, after rising from zero in 2007 to 2.2% in 2008, and 5.2% in 20009.
The budget deficit totaled NIS 30.2 billion in 2010, and was well below the government target of 5.5% of GDP.
Published by Globes [online], Israel business news - www.globes-online.com - on January 13, 2011
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