Jerusalem, 7 March 2000

Government Tax Revenue in February: NIS 11.9 Billion

(Communicated by the Finance Ministry Spokesman)

The Finance Ministry today (Tuesday), 7.3.2000, stated that total government revenue from taxes and fees was NIS 11.9 billion in February, compared to NIS 9.7 billion in February 1999, a 20% increase in real terms. Although extreme care must be taken regarding monthly revenue figures and their significance regarding economic activity, the January and February revenue figures point to accelerated economic activity that began in the second half of 1999. The Finance Ministry expects further increases in revenue over the coming months. The Finance Ministry notes that income tax revenues in the first half of 1999 were negatively affected by the erosion in corporate profits at the end of 1998 due to the sharp devaluation in the Shekel at that time and a delay in the issuing of advance tax payments forms in early 1999. However, in 1999 overall, income tax collection rose by over 2% in real terms, which also affected the rise in revenues at the beginning of this year. Revenue from income and land taxes were NIS 7.3 billion in February 33% higher than in February 1999. Revenue in the past three months is 23% higher than in the comparable period a year ago. Revenue from VAT and customs was NIS 4.3 billion in February, 2.6% higher than in February 1999. Revenue from government fees was 27% higher in February 2000 than in February 1999.