A decline of about 8% in state tax revenues in January-May 2023 compared to the same period in 2022 (Photo: ShutterStock)
In May 2023, state tax revenues totaled NIS
34.9 billion● At uniform tax rates, state tax revenues declined in May 2023, in real terms, by 10% compared to May 2022. Collection from direct taxes declined by 11 percent compared with last year, collection from indirect taxes declined by 9 percent, and collection from fees increased by 20 percent. The decline in direct tax revenues derived from a decline in all revenue items, but mainly in real estate tax revenues and an increase in tax returns. The decline in indirect tax revenues is also partly explained by a reduction in activity in the real estate market. It should be noted that revenues in May 2022 were relatively high.
In January-May 2023, revenues amounted to NIS 184.1 billion, compared with NIS 193.9 billion in the corresponding period last year. At uniform tax rates, tax revenues fell by 8%. Direct tax revenues declined by 11% and indirect tax revenues declined by 4% compared to January-May 2022. Fee revenue increased by 5%. The decline in January-May 2023 is mainly explained by high revenues in January-May 2022.
Compared to the same period in 2021, there was an increase at an annual rate of 7% in total tax revenues, but it should be remembered that the same period in 2021 was still under restrictions due to the coronavirus, mainly in January-April.
Direct tax revenues totaled NIS 19.9 billion in May 2023, compared with NIS 22.1 billion in May 2022. At uniform rates, direct tax revenues declined by 11% in May 2023. The most significant decline was in real estate tax revenues.
Income tax from self-employed individuals and companies (gross) – In May 2023, the collection in this section amounted to NIS 8.7 billion, compared with NIS 8.9 billion in May 2022. At uniform rates, collection from self-employed individuals (including shareholders in companies) increased by 2 percent, and collection from companies declined by about 11 percent. From January to May 2023, revenue in this section decreased by 9%.
Deductions (income tax deductions from renters and other withholdings, including from the capital market) – Collection from deductions totaled NIS 12.2 billion in May 2023, compared with NIS 13.1 billion in May 2022. In real terms, excluding exceptional payments, this represents a decline of 7 percent.
The capital market: In May 2023, gross collections of NIS 0.4 billion were recorded, similar to May 2022.
Real estate taxation – Net revenues from real estate taxation amounted to NIS 1.3 billion in May 2023, compared with NIS 2.6 billion in May 2022, a real decline of 52%. Collection from capital gains tax declined by 42% and collection from purchase tax declined by 57%, compared with the same period last year. Cumulatively, since the beginning of the year, real estate tax revenues have declined by 39%.
Refunds – In May 2023, refunds from income tax and deductions totaled NIS 2.1 billion, compared with NIS 1.5 billion in May 2022, an increase of 31% in real terms. Since the beginning of the year, refunds have increased by 9%. Most of the increase was recorded in refunds in the information and communications and professional activity industry.
- money
- news
Tags
- State revenue
- Taxes
- Taxes