Finance Minister Smotrich Incorrectly Claims He's First to Cut Taxes in 20 Years

Israeli Finance Minister Bezalel Smotrich claimed he is the first finance minister in 20 years to cut taxes, specifically income tax, during a recent interview. However, an analysis by Ynet reveals this statement to be largely inaccurate.

While Smotrich did adjust income tax brackets to allow more people to benefit from lower rates, a practice that will be fully implemented by 2026, previous finance ministers have made similar adjustments in the last decade. Notably, Moshe Kahlon, Yisrael Katz, and Avigdor Lieberman all implemented changes to income tax brackets between 2018 and 2022.

Furthermore, the analysis highlights that Value Added Tax (VAT) has been reduced three times in the past 20 years under different finance ministers: in 2006, 2010, and 2015. In contrast, Smotrich's tenure has seen an increase in VAT scheduled for 2025. Similarly, corporate tax rates were lowered by previous ministers, a move Smotrich has only expressed intentions to pursue.

National Insurance and health taxes have also seen complex changes under Smotrich, including increases in certain rates for both employees and employers, as well as for the self-employed. The article concludes that Smotrich's assertion is incorrect, as numerous tax reductions, including VAT and corporate tax, have occurred under previous finance ministers, while Smotrich's term has included tax increases in some areas.