Over half of Israelis earn below tax threshold

salary slip

The Finance Ministry's tax revenues report shows 52.3% of Israelis earning below the monthly income tax threshold of NIS 4,905.

The Ministry of Finance's latest tax revenues report shows 52.3% of Israelis failing to earn above the income tax threshold of NIS 4,905 per month. In all 54.5% of salaried employees fail to reach NIS 4,905 per month and 33.8% of the self-employed. The report also found that the highest 20% of earners paid 80% of Israel's direct taxes.

The report also reflected the growing regional inequalities in Israel. Tel Aviv residents are responsible for 27% of all the income tax paid in Israel, Haifa residents 12.2% and Jerusalem with double the number of residents as Tel Aviv is responsible for only 6.8% of income tax paid.

The report also reflects gender inequalities. In 2012, the average gross income of an Israeli man was 63% higher than the average gross income of a woman.

The report also shows fuel tax revenues tripling between 2000 and 2014 while fuel prices rose just 50%. The report shows that in 2014 alone the Israeli government raked in over NIS 27 billion from tax on gasoline, diesel, cars and vehicle parts.

Published by Globes [online], Israel business news - www.globes-online.com - on February 7, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

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