The corona crisis is causing extreme fluctuations in the collection of praise tax and purchase tax
Revenue from praise tax in the years 2018-2020, in millions of shekels
Photography:
Data from the Tax Authority
Produced by the Department of Special Supplements
It is said that nothing in the world is safe except death and taxes.
It turns out that in the corona era even taxes are not the safest thing to have.
The Tax Authority has published a review to present the real estate market's response to the corona crisis, as reflected in the praise tax and purchase tax revenues. In addition, the praise tax and purchase revenues for 2019-2013 were published, according to various segmentations, such as
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A number of interesting data emerge from the survey: In March 2020, with the onset of the slowdown in economic activity following the corona crisis, tax revenues from the sale of real estate (appreciation tax) decreased significantly.
June sees some recovery and in July-August a return to a similar volume of revenue to January 2020, and even higher than the corresponding period in 2018 and 2019.
In September, revenues fell, following the new restrictions that went into effect on New Year's Eve.
The decrease in purchase tax revenues is observed from April.
In August there was an increase in revenue, and in September revenue from purchase tax returns to fall.
In 2019, NIS 6.9 billion was collected from purchase tax and NIS 4.5 billion from praise tax.
Segmented by types of properties, it can be seen that the income from purchase tax in 2019 comes mainly from the collection from the purchase of apartments - 58% (32% from apartments for investment, 12% from the purchase of a single apartment and 14% from apartments on hold).
25% of the purchase of land, 15% of the purchase of buildings and the remaining 2% are due to activities in a real estate association.
Produced by the Department of Special Supplements