Israel plans 1% VAT rate rise to 18%
- 11 April 2013 | Richard Asquith
The latest budget, published this week, has unveiled an Israeli VAT rise. This increase is required to help reduce the government’s deficit.
The current Israeli VAT rate is 17%, following a 1% VAT rise in 2012. The new rate will be 18% from 31 May 2013. There will also be cuts to spending, including a reduction in government employee salaries by up to 3%, and reductions in defense spend. The VAT rise and proposed cuts will reduce the Israeli budget by 14bn shekels.