Israel's Finance Minister plans cutting VAT by 1%, reports "Yediot Ahronot."
Israel's Minister of Finance Moshe Kahlon plans cutting VAT by 1% to 17%, in an attempt to stimulate the country's sluggish economic growth, "Yediot Ahronot" reports this morning.
The report says that the first VAT cut for five years would be possible due to a surplus in tax collection in recent months. Such a step would be desirable as domestic demand, consumption and investment have slowed and the concern is that surplus government tax collection would find its way into the defense budget and not benefit people's welfare.
However, the report adds that there is no consensus at the ministry of finance regarding Kahlon's intention to cut VAT.
A cut in VAT would lower prices across the board in the Israeli economy from new homes and new cars to basic food products.
Published by Globes [online], Israel business news - www.globes-online.com - on September 2, 2015
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