Tomorrow (June 3rd) at 12:00, the Economic Affairs Committee will discuss the implications of the 1% raise in VAT, bringing it to 18%. The committee will debate the implications of the increase upon economic activity and on consumer purchase power. The raise came into effect last week after being approved by the Knesset Plenum.
Chair of the committee, MK Avishay Braverman (Labor), addressed the raise in VAT during a discussion on assisting small businesses saying that ”the VAT is a button that the government presses, every additional percentage giving it another 4 billion NIS in order to close the deficit, instead of taking important steps to change the tax system, which may impact the powerful companies which pay low levels of taxes and the deceitful people who find ways to avoid paying.”
Representatives from the Finance Ministry, the Prime Minister`s Office, the National Economic Council, the Ministry of the Economy, the Bank of Israel, the Chamber of Commerce, ”Lahav” – the Independent Enterprise Institute, Consumer Rights Organizations, the Builders Association and the National Insurance Institute of Israel will be present for the deliberation.