Higher demand for consumer products and vehicles and the two tax collection campaigns boosted tax receipts.
The slowdown during the first quarter of 2005 ended in May. Tax receipts for May are projected to total NIS 14-15 billion, of which a fifth are purchase taxes on vehicles. May will be Israel's best tax month since independence in 1948.
The sharp increase in tax receipts for May is due to renewed growth in economic activity and rising demand for consumer products and 2006 model vehicles, especially commercial vehicles, caused by the cancellation of VAT recognition for commercial vehicles beginning on June 1. Customs are expected to release over 20,000 vehicles in May, double the number released during April.
In addition, the two tax collection campaigns launched by Israel Tax Authority director Eitan Rub boosted tax receipts by NIS 1.5 billion, well above the NIS 1 billion target.
Published by Globes [online], Israel business news - www.globes.co.il - on May 31, 2005