The Knesset Finance Committee approved on Tuesday three sales tax directives that are meant to increase the taxation on luxury goods, including private vehicles that cost NIS 300,000 and over, ATVs, jet skis, private planes, large television screens (50 inches or more) and refrigerators (800-liter capacity or more), antique furniture, furs and other goods.
Eran Yaakov, senior vice president for economic planning at the Tax Authority, said there is no reason not to increase the tax on luxury goods that are used for entertainment purposes, but luxury goods that are used for work purposes, such as ATV which are used in agriculture and tourism, or crop dusting planes, should not be taxed.
Yaakov told the committee that the State stands to earn NIS 100-110 million a year from the increased taxation of luxury goods.
The State will increase the tax on the following luxury goods:
Vehicle costing NIS 300,000 or more.
Large television screens (50 inches or more) – 15% sales tax to be raised to 20%.
Large refrigerators (800-liter capacity or more) – tax increase of NIS 550 per unit.
ATVs: Sales tax to be raised from 30% to 50%.
Planes: State to impose 15% sales tax.
Yachts: State to impose 15% sales tax.
Jacuzzis: 12% sales tax on units made in Israel; 19% on imported units.
Luxury clothing items (fur): State to impose 20% sales tax.
Antique furniture: State to impose 20% sales tax.