The new richest is the State of Israel: a record in state tax revenues
The state's revenues in 2021 amounted to about NIS 384 billion.
The Chief Economist's report in the Treasury shows that this is a real increase of about 22% from 2020 and of 22% from 2019, before the corona crisis.
Almost a third of revenue, as a result of VAT payments
Between Ashkenazi
08/03/2022
Tuesday, 08 March 2022, 06:39 Updated: 07:08
Share on Facebook
Share on WhatsApp
Share on Twitter
Share on Email
Share on general
Comments
Comments
Although it is too early to know whether the corona is already behind us, or what the long-term effects of the Russian invasion of Ukraine will be, but at least as far as the year was, 2021, it can be stated that with all due respect to high-tech unicorns or the income of various factors in Israel The most money in 2021, the State of Israel calls.
The Chief Economist at the Ministry of Finance, Shira Greenberg, publishes today (Tuesday) the State Revenue Report as of the end of 2020 and the data available on the Treasury's computers for 2021. The report presents developments in tax collection in Israel and the Ministry of Finance emphasizes
More on Walla!
Between Tel Aviv and Ibiza: the restaurant that brought the tapas back to life
In conjunction with zap rest
Internal Revenue Service.
When all the taxes are added to the calculation, an income of NIS 496 billion is obtained (Photo: official website, Eyal Yitzhar, Globes)
Half of the workers in Israel, below the tax threshold
According to the report, in 2021 the population of income tax payers stood at about 4.52 million individuals.
By gender, men make up 52% of the total tax model population compared to women who make up 48% of it.
A worrying figure found in the report shows that about half of those with taxable income are below the income tax threshold in 2021
. Of women is relatively low compared to men, and in addition they earn more credit points.As a result, 61% of women do not pay income tax, compared to 37% of men.
Buy more, pay more VAT (Photo: Reuven Castro)
A third of revenue, as a result of VAT collection
According to the report in the first half of 2020 with the corona crisis and the accompanying restrictions on the economy, caused a decrease in state tax revenues.
However, the economy began to recover in the second half of 2020, until
in 2021 the government's tax revenues amounted to about NIS 384 billion.
This is a real increase of about 22% from 2020 and about 20% from 2019.
The rate of increase in state revenues in 2021 is 5.4 times higher than the annual average of the rate of growth in the last decade.
In addition to the tax collection of the National Insurance Institute and the local authorities, the total tax revenue of the wider government is expected to amount to NIS 496 billion in 2021.
The report also shows that in 2020, the last year for which the OECD published data so far, the total tax burden in Israel was 29.7 percent of GDP, a figure of 1.2 percent of GDP from the weighted average of OECD countries' GDP and 3.8 percent lower. A product from their simple average, but if the mandatory pension provisions were counted in the total tax payments, as is customary in most OECD countries, another 2.8 percentage points would be added to the tax burden in Israel and it would be 32.5 percent of GDP in 2020.
An interesting figure emerges from the report He says that the largest tax components are VAT, which constitutes 32% of the government's total tax collection, and income tax on individuals and corporate tax, which constitute 30% and 12%, respectively, of the total tax collection.
The tax benefits for 2021, according to the estimate, amounted to NIS 76.6 billion, which is about 5.0 percent of GDP.
Compared to other countries, the tax mix in Israel is characterized by a higher weight of VAT income compared to the weighted average among OECD countries and a lower weight of income tax on individuals and the share of employers in social security contributions. However, it should be remembered that employers in Israel For a pension for their employees that is not included in the calculation of the tax burden.
Chief Economist at the Ministry of Finance, Shira Greenberg (Photo: Finance Spokeswoman)
The rich pay more
According to the chief economist, the direct tax rate rises moderately from about 10% of gross monetary income in the first decile to a rate of 24% in the eighth decile, and rises sharply to 30% and 40% in the ninth and tenth deciles, respectively.
In addition, the marginal direct tax rate in Israel is lower than the OECD average in income levels of 67% of the average wage and 100% of the average wage, while at the income level of 167% of the average wage this rate in Israel is higher than the OECD average.
In contrast, indirect taxes are regressive in relation to income, but according to OECD studies they are less harmful to growth than direct taxes.
The indirect tax rate consistently decreases from 37% of gross income in the bottom decile to 8% in the top decile.
From the analysis in the report it can be learned that VAT is an almost relative tax in relation to expenditure, that is, all deciles pay VAT at a similar rate in relation to total expenditure.
Of money
news
Tags
Taxes
State revenue
VAT
Income Tax
