JPost: Value added tax increase delayed by one month
07/31/2012 14:35–Finance Minister Yuval Steinitz decided Tuesday to postpone the one percent Value Added Tax increase by one month, following consultation with Knesset Finance Committee Chairman Moshe Gafni.
VAT was supposed to rise from 16% to 17% on Wednesday August 1, but the increase will now be implemented September 1 in order to allow businesses time to prepare, the Treasury said.
The cabinet approved the VAT increase Monday as part of a series of sweeping austerity measures that it hopes will raise NIS 14.15 billion next year and reduce the budget deficit by 1.5%.
The austerity package included a 1% income tax hike for those earning NIS 8,881-41,830 per month, 2% surtax for all income above NIS 67,000 per month, and across-the-board expenditure cuts…Read More>>
