"The level of taxation in Israel is one of the highest in the world":
Finance Minister Avigdor Lieberman declared today (Tuesday) that the tax on fuel will be reduced for one quarter, which will significantly reduce the cost of living.
Just last week, six days before the announcement, Justice Minister and Deputy Prime Minister Gideon Saar said at the "Israel Today" conference on national-social resilience: "I am of the opinion that taxation on fuel should be reduced. I said my opinion more than once at a cabinet meeting. "It is not in our control, but the level of taxation in Israel, which is in our control, is one of the highest in the world. The state can absorb the decrease in income and this will ease the cost of living."
Today, after Lieberman's announcement, Saar tweeted on his Twitter account: "Welcomes Finance Minister Avigdor Lieberman's decision to adopt my proposal, which I have repeated many times at the cabinet table, to reduce the excise tax on fuel."
The Minister of Justice stormed the "Israel Today" conference, Photo: Oren Ben Hakon
The tax on fuel goes down, Photo: Ratzi Shapira
Minister of Finance Lieberman, Photo: Oren Ben Hakon
As stated, after great public pressure, Lieberman announced the reduction of the excise tax on fuel and diesel by half a shekel immediately.
"If there is a possibility, we will return money to the public," the finance minister said at a press briefing held earlier at Zoom.
The move now requires the approval of the Finance Committee.
The price of fuel is NIS 7.44 per liter - out of this amount, NIS 3.13 on excise tax and NIS 1.08 VAT. Lieberman's promise means a reduction in the price of fuel by half a shekel - to NIS 6.94.
According to estimates, the reduction will cost the state about NIS 2.5 billion a year (if the reduction is extended beyond one quarter, where the cost amounts to NIS 800 million).
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