Bank of Israel research department deputy director Dr. Michel Strawczynski: The fall in indirect tax revenues this year is seasonal.
“The figures accumulated so far this year are consistent with the 3.4% budget deficit target adopted by the government for 2005, including spending on disengagement. This assumes, however, that there will be no further tax cuts,” Bank of Israel research department deputy director Dr. Michel Strawczynski told "Globes" today.
Strawczynski said that tax revenues in the first quarter had followed the usual seasonal pattern. Income tax revenues were higher than planned, while import tax revenues were lower.
Strawczynski said that, because the Passover holiday was a month later than it had been last year, the fall in indirect tax revenues was seasonal.
The Ministry of Finance estimates that 2005 tax revenues will exceed NIS 161 billlion. A report for 2004 by the Ministry of Finance economic research and state revenue division published a month ago stated, “The tax revenue forecast for 2005 is optimistic, and will be re-evaluated.”
Published by Globes [online], Israel business news - www.globes.co.il - on April 6, 2005