The Knesset Plenum rejected in the preliminary vote a Value Added Tax Bill (Amendment – Cancelling the VAT on the excise) 2011, proposed by MK Meir Sheetrit and a group of MKs.
The Bill, which was meant to cancel the VAT that is to be paid as part of the excise and to leave only the VAT that is paid on the fuel itself, was removed from the daily agenda.
In the written explanation for the Bill, was noted that currently half the price of the fuel for the consumer is taxes. Raising the price of the excise hurts all of the country’s citizens and particularly hurts the Middle and Lower Classes.
Today the price of fuel consists also of Value Added Tax and also of excise on the fuel, as such the proposal was made to cancel the VAT that is charged due to the excise.
18 MKs supported the Bill, 29 opposed and one MK was present and did not vote