Live Terminal
Politics · Full coverage

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

How 3 Israeli newsrooms covered this story — translated into English and compared side by side.

Finance Minister Blocks VAT Cut Proposal by Housing Minister Ahead of Elections
67% center
Center 2Right 1

First reported by Ynet · Jun 28, 2026

What happened

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.

Summary translated & synthesized from the sources below by baba. Read each original for the full report.

In this story
People
Bezalel Smotrich
OrganizationsFinance Ministry, Tax Authority, Jewish Torah Party
PlacesIsrael

Full coverage · 3 outlets

The same event, reported separately by each newsroom. Open a few to compare what each emphasizes — and what they leave out.

WallaCenter · HebrewJun 28, 2026
Finance Minister Blocks VAT Cut Proposal by Housing Minister Ahead of Elections
Arutz ShevaRight · HebrewJun 28, 2026
Israeli Cabinet Committee to Discuss Bill Lowering VAT from 18% to 17% to Ease Cost of Living
WallaCenter · HebrewJun 28, 2026
Israeli Housing Minister Proposes VAT Cut to 17% Despite Treasury Opposition
YnetCenter · HebrewJun 28, 2026
Israeli Cabinet Committee to Debate VAT Cut Despite Finance Ministry Opposition

Related stories

Israeli Finance Ministry Threatens VAT Hike to Fund Defense Budget IncreaseJul 2, 2026Builders Urge Cut in Investor Purchase Tax to Ease Rental PricesJun 17, 2026Finance Minister Smotrich Pushes Controversial Savings Reform Amid Market OppositionJul 2, 2026Finance Minister Criticizes Bank of Israel's Minimal Interest Rate Cut Amid Economic ChallengesJul 6, 2026Israeli Finance Ministry Warns Property Tax Discount Reform Will Severely Cut Local Authority RevenuesJul 5, 2026MK Bitan’s Claim on OECD Food VAT Rates Is Inaccurate, Experts SayAug 5, 2026