Wait with the refueling:
It seems that the price of fuel will be reduced by half a shekel this coming Wednesday.
In accordance with Finance Minister Avigdor Lieberman's decision this week to lower taxes on fuel and diesel, the Finance Committee will convene next Wednesday to approve the required regulations, and immediately after approval, the finance minister is expected to sign the order lowering the excise tax by half a shekel.
This is what Israel Today has learned.
We will explain that lowering the excise tax on fuel and diesel for three months reduces the state's tax revenue by NIS 850 million, and therefore requires the government to present a budgetary source, ie to make a "balance move".
The source of funding determined by the Treasury is a one-time reduction in the provision for the compensation fund in respect of property tax.
The Finance Committee chaired by MK Alex Kushnir is expected to have a majority for the decision, and once approved the finance minister will sign the order reserving the tax cut so the price of fuel is expected to drop on Wednesday immediately after the minister's signature.
Lowers fuel prices.
Lieberman // Photo: Yoni Zindel / Flash 90,
The new price will be NIS 6.94 per liter of 95 octane gasoline including VAT. Despite the reduction, the price of fuel will still remain at a record level of 8 years, and taxation on fuel despite being reduced by half a shekel will continue to be among the highest in the world. - Of this amount, NIS 3.13 is paid on excise tax and NIS 1.08 is paid VAT, that is, about 57% of the price of fuel is the taxes levied by the government.
After reducing the excise tax by half a shekel - the level of taxes will drop to 53% of the price of a liter of gasoline.
How will the government fund the reduction?
This is a fund intended for compensation for war damage and more, to which the state allocates funds every year.
As of the end of 2021, the fund contained NIS 19 billion - with non-recurring revenues for 2021 exceeding expectations and totaling NIS 3.2 billion.
The implication is simple the government can afford to continue to lower the price of fuel well beyond the three months stipulated in the Lieberman decision.
It should be noted that about a month ago, the state already used the fund in the amount of NIS 1.65 billion in order to finance the "customs-zero" plan that was presented as part of the plan to reduce the cost of living.
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