Economy · Full coverage
Israeli Housing Minister Proposes VAT Cut to 17% Despite Treasury Opposition
How 2 Israeli newsrooms covered this story — translated into English and compared side by side.
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First reported by Ynet · 4 hours ago
What happened
Housing Minister Yitzhak Goldknopf proposes reducing VAT from 18% to 17% ahead of elections, reversing a recent government hike. The Finance Ministry warns this would create a multi-billion shekel deficit without funding and doubts consumers would fully benefit. The move highlights political tensions over cost-of-living measures amid ongoing security and reconstruction expenses.
- 01Minister Goldknopf proposes cutting VAT from 18% to 17% four months before elections.
- 02Finance Ministry opposes, citing a multi-billion shekel budget deficit risk.
- 03VAT hike was approved in January 2024 to cover war and reconstruction costs.
- 04Tax Authority estimates the cut would cost 8.5 billion shekels annually.
- 05Officials doubt full consumer benefit due to market concentration effects.
- 06Goldknopf previously supported the VAT increase, raising questions about timing and motives.
Summary translated & synthesized from the sources below by baba. Read each original for the full report.
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