Further decline in state tax revenues | Israel Hayom

State tax revenues continue to decline: Israel's deficit has risen to 0.3% of GDP. The cumulative deficit over the preceding 12 months widened, to about 0.3 percent of GDP, or about NIS 4.9 billion, compared with a deficit of almost zero measured in the twelve months ending in March. This was announced today (Monday) by the Accountant General's Department in the Ministry of Finance.

April ended with a surplus of about NIS 3.3 billion compared with April of last year, which ended with an exceptional surplus of about NIS 8 billion. Since the beginning of the year, there has been a cumulative surplus of about NIS 17.4 billion. In April, state tax revenues totaled NIS 40.6 billion.

The deficit increased to 0.3 percent of GDP. Tax Authority building, photo: Yehoshua Yosef

Since the beginning of the year, state revenues totaled NIS 161.2 billion, compared with NIS 166.6 billion in the corresponding period last year – a cumulative decrease of about 3.2% compared to the same period last year. On the expenditure side, expenditures in April totaled NIS 37.2 billion. Government expenditure since the beginning of the year was about NIS 144 billion, compared with NIS 134.5 billion in the corresponding period last year, a cumulative increase of about 7% compared with the corresponding period last year.

The data indicate a decline in state revenues on the one hand and an increase in state expenditure on the other, which ultimately leads to a widening of the deficit.

Revenue declined

Direct tax revenues totaled NIS 2023.20 billion in April 7, compared with NIS 21.7 billion in April 2022. At uniform rates, direct tax revenues declined by 2023.8 percent in April 1. The most significant decline was in real estate tax revenues.

Direct tax revenues totaled NIS 2023.20 billion in April 7, compared with NIS 21.7 billion in April 2022, Photo: Reuters

Income tax from self-employed individuals and companies (gross) – In April 2023, the collection in this section amounted to NIS 7.8 billion, compared with NIS 8.2 billion in April 2022. At uniform rates, collection from self-employed individuals (including shareholders in companies) declined by 14 percent, and collection from companies declined by about 8 percent. The reduction in corporate tax in April 2023 follows a high increase in collections in April 2022. In January-April 2023, revenue in this section decreased by 10%.

Real estate taxation: Net revenues from real estate taxation totaled NIS 2023.1 billion in April 0, compared with NIS 1.9 billion in April 2022, a real decline of 49%. Collection from capital gains tax declined by 56% and collection from purchase tax declined by 45%, compared with the same period last year. It should be noted that this is a month with few working days due to the holidays. April 2022 was also Passover, but with more working days. Cumulatively, since the beginning of the year, real estate tax revenues have declined by 35%.

Wrong? We'll fix it! If you find a mistake in the article, please share with us