Compared to last year, it seems that in many industries the situation is better in May-June • The Authority noted: "It can be said with caution that most industries have managed to cope with the situation better" • The main damage: in the art industries

• Holy Cafe in Jerusalem // Photo: Oren Ben Hakon

Good surprise: Most industries have managed to cope with the corona better than early expectations - according to a publication by the Tax Authority.

In a review prepared by the Planning and Economics Division of the Authority, an analysis was presented for the months of May-June 2020 compared to the corresponding period last year. The authors of the review note that since most economic practitioners report VAT on a cash basis, ie, income is recorded and reported at the time of receipt of the actual consideration - initially estimated that in March-April a partial picture of harm to businesses may be seen, and that significant harm in subsequent months.

"In practice," the tax authority notes, "it can be said with caution that most industries have managed to deal with the situation better than is reflected in the March-April data." In general, the data indicate a large hurt in March-April and a more moderate hurt in the trading volumes in May-June. However, a relatively large decrease in turnover was recorded in May-June among small dealers with an annual turnover of up to NIS 1 million. Dealers with a turnover of up to NIS 300,000 were injured (calculated according to the median turnover) by 34.1% compared to the corresponding period last year.

Significant injury

The industries most severely affected were arts and entertainment, where the injury rate remained very high - 46% and 44%, respectively. In the hospitality and food industries, the total turnover in March-April was very severe - 55%, and in May-June it is still a high injury, but with some moderation - 43%.

In the information and communication services industries, an increase in the total turnover was observed in both March-April and May-June. The agricultural industries recorded only a moderate decline in the two periods compared to 2019. The manufacturing and trade industries, the two largest industry groups in total cycles, went from a situation of quite significant injury in March-April, to a relatively moderate reduction in May-June compared to last year. Transportation and storage services, education, and administrative services continued to absorb a significant decrease in transaction turnover.

The report also shows that the number of businesses closed in the first half of the year - 9,384 - is one third lower than in 2019. The Authority explains the surprising data in the partial closure of the Authority's offices following the guidelines, and in the fear of business owners. For the purpose of continuing to receive the grants. "