22.05.2012                      01.Siwan. 5772                    Rosch Chodesch; Tag 45 des Omer

Wirtschaft:

Treasury mulls raising VAT to 17% in July to close budget gap

The treasury is currently forecasting a NIS 29.7 billion deficit for 2012, much larger than the NIS 18.4 billion deficit it had originally anticipated.

In light of a growing budget deficit, the Finance Ministry is considering raising VAT from 16% to 17% beginning July 1 in order to add NIS 2 billion to this year's tax revenues.
The treasury is currently forecasting a NIS 29.7 billion deficit for 2012, much larger than the NIS 18.4 billion deficit it had originally anticipated, and is looking for ways to meet the shortfall now that the threat of early elections has faded….