Israel to cut VAT

Possible VAT cut in Israel

The Prime Minister of Israel, Benjamin Netanyahu has recently announced plans to reduce the current rate of VAT from 18% to 17% to help promote economic growth, following a higher than expected tax collection in recent months. Speaking earlier this month, Prime Minister Netanyahu is quoted as saying  “An economy burdened by high taxes doesn’t grow, so in order to encourage growth I have decided, with Finance Minister Kahlon, to cut taxes.”

The expected implementation date is the 1st of October 2015. However the same VAT cut was promised in 2014 and it failed to be implemented along with promises earlier this year to reduce the VAT on food.

Israel have been suffering from a flat economy in recent years and are looking at plans to bolster it and after serval discussions earlier this month this latest VAT cut proposal has now been given the green light. In order to silence those who have questioned how viable this cut is, the Prime Minister has also promised that if the cuts fail then the whole issue will be revisited and taxes may be raised again.

 

Laura Stockley
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Laura Stockley

Consultant at eBiz Answers Ltd
Laura graduated from University with a degree in Business Studies, and has been working as an Oracle eBTax consultant for several years now, with both R12 eBTax and Fusion (Oracle Cloud) Tax. Focussing primarily on the tax module and its components, Laura also works on the other financial modules and understands how they integrate with the tax engine. Laura has worked on projects with multiple clients covering all aspects of the tax module including AP, AR and GL, working on everything from design, configuration, testing to support. An excellent communicator, Laura enjoys interacting with end users and relishes the challenge of resolving their issues; making tax an enjoyable experience, always.
Laura Stockley
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