The tax authority will transfer refunds of NIS 1 billion to distressed businesses • VAT will also be refunded, amounting to NIS 230 million
Business Closed Business // Photo: Yehoshua Yosef
The Tax Authority transfers tax refunds to businesses amounting to NIS 1 billion in a concentrated procedure. Director of the Tax Authority, Eran Ya'akov, announced that in order to help businesses in Israel, in light of the financial distress that they were facing due to the economic consequences of dealing with the Corona virus, the Tax Authority conducted a special effort last week and this week focused on income tax and VAT systems, As a result, by mid-next week, tax refunds totaling approximately NIS 1 billion will be released.
As part of the concentrated effort, income tax credits totaling about NIS 750 million were released to approximately 16,000 individuals and companies that had refunds under review. Some of the funds have gradually entered the bank accounts as of last Wednesday, when the move will end this week, with the reimbursement of additional significant amounts into the bank accounts.
A parallel move is currently underway in a VAT system where over the next seven days the bank accounts of some 27,000 dealers are expected to receive input tax returns in the amount of about NIS 230 million. According to the head of the Bank of Israel's research division, Prof. Michel Stabczanski , The budget deficit in 2020 will reach NIS 95 billion, compared with NIS 55.4 billion in 2019, compared with NIS 38.1 billion in 2018.
