Israel Considers New Taxes to Boost State Revenue
Translated & summarized from TheMarker by baba
Israel's Ministry of Finance is proposing new taxes and tax increases to boost state revenue for the next government. Proposals include a carbon tax on flights, direct VAT collection, ending rental income tax exemptions, and land property taxes. These measures aim to fund defense, civilian needs, and manage public debt.
The story in 4 lines · by baba
- Israel's Finance Ministry is proposing new taxes to increase state revenue.
- A carbon tax on flights and direct VAT collection are among the proposals.
- Ending rental income tax exemptions and introducing land property taxes are also considered.
- The proposals aim to fund defense and civilian needs while managing public debt.
Israel's Ministry of Finance is preparing recommendations for the next government aimed at increasing state revenue. The Tax Authority is pushing for direct VAT collection from businesses upon payment receipt and the imposition of a carbon tax on flights. Other proposals on the table include ending the rental income tax exemption, introducing property tax on land, and reducing tax benefits. Some of these ideas have been previously proposed but faced opposition.
With a new government yet to be formed, the incoming administration will eventually need to formulate a budget. Due to significant defense expenditures, anticipated cessation of U.S. aid, and the desire to invest in civilian life without excessively increasing public debt, the next government is likely to consider raising existing taxes and introducing new ones.
