Figures published today by the Ministry of Finance show a drop in tax receipts in November, together with other figures published by the Israel Tax Authority and the Central Bureau of Statistics, indicating an economic slowdown.
State tax receipts totaled NIS 21.2 billion in November, NIS 400 million less than the forecast for the month, according to data from the Ministry of Finance Accountant General department, and 0.9% less than in the corresponding month in 2013, excluding the effect of legislative changes. Revenues from direct taxes (income tax and corporate tax) fell by a steeper 7.4% in November, while revenue from indirect taxes grew 8.7%.
The disappointing tax receipts in November narrowed the positive difference this year between actual state tax revenues and the forecast from NIS 4.1 billion as of October 31 to NIS 3.7 billion as of November 30. The Ministry of Finance said that civilian office expenses had risen 3.5%, compared with a planned 7.6% rise, while defense establishment expenses were up 2.8%, compared with a planned 7% increase. As a result of these trends, the budget deficit is on a downtrend, amounting to 2.6% as of the end of November, compared with 2.8% at the beginning of the month.
More cars, fewer washing machines
The Israel Tax Authority published figures for imports of consumer goods, showing that imports of private vehicles jumped 10% in November, compared with November 2013. The increase in cumulative vehicle imports since the beginning of the year amounts to 6.9%.
In contrast, imports of electrical appliances were down sharply in November, especially washing machines (a 29% drop, compared with November last year), refrigerators (13.3%), and television sets (15%).
Data from a business tendency survey published by the Central Bureau of Statistics show that the decline in evaluation by managers in the hotel sector continued with an 18.5% fall, reaching its lowest level in the sector since January 2013. The general index for managers' evaluations was down 0.8%, compared with the preceding month.
Published by Globes [online], Israel business news - www.globes-online.com - on December 9, 2014
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