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Finance Minister Blocks VAT Cut Proposal by Housing Minister Ahead of Elections

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דווח לראשונה בYnet · Jun 28, 2026

מה קרה

Housing Minister Yitzhak Goldknopf's proposal to reduce VAT to 17% was delayed by two weeks after Finance Minister Bezalel Smotrich opposed it, citing budget concerns. The Finance Ministry warns the cut would cost 8.5 billion shekels annually and could force severe budget cuts or increased deficits. Coalition partners have two weeks to reach an agreement or abandon the plan.

01Finance Minister Bezalel Smotrich blocked a VAT cut proposal by Housing Minister Yitzhak Goldknopf.
02The VAT reduction from 18% to 17% was postponed by two weeks for further coalition talks.
03Finance Ministry warns the cut would cost the state 8.5 billion shekels annually.
04The VAT was recently raised to 18% to cover war-related expenses.
05Officials criticized Goldknopf for reversing his earlier support for a VAT increase.
06Coalition partners have two weeks to reach a consensus or drop the proposal.

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