The families of the abductees in the Finance Committee/Knesset Channel
The Finance Committee today (Tuesday) approved the decree that the government decided on as part of the balancing plan for 2024, according to which the value added tax (VAT) will be increased by 1 percent in 2025. According to the decree, starting January 1, 2025, the VAT rate will increase by a point percent, so that the tax on a transaction in Israel and on the import of goods will be 18% instead of 17% today.
In the discussion held in the committee, the members of the Knesset (from the coalition and the opposition) complained about the government's decision to raise the VAT to the public, this at a time when it is allocating billions of shekels in coalition budgets and not closing government offices whose closure was recommended by the professional echelon of the Ministry of Finance.
"The State of Israel pays over 10 billion shekels a year on budget pensions, why is this not touched? The Chief of Staff's supplement is 1.3 billion NIS per year, they tried to regulate it by law and it still has not been regulated, and yet this amount is paid every year even though it is illegal," said MK Hanoch Milbitsky of the Likud: "You are taking away from minimum wage workers their NIS 430, which for them is a lot. This is a stupid tax that hurts the weak without an element of economic growth next to it. This is a stupid move, go back to the drawing board and bring us something that brings growth, you raised it to 18% And we didn't start with Lebanon, will we raise taxes again? I won't vote for it."
MK Hamed Amar (Israel Beitenu) also said he would vote against it: "This is an attack on the weak, the medicines will go up, everything will go up."
MK Naama Lazimi (Labor): "A country that does nothing, turns to a measure that hurts the weak, why not turn to taxation Capital and big companies first of all? The easiest is a tax that no one will notice but will feel it in all the inputs that go with it. I really see these measures as helping big capital and harming the weakest population, it's a budget cuts."
Debate in the Finance Committee/Dani Shem Tov, Knesset Speakers
On the other hand, MK Eli Dellal (Likud) said: "There is no doubt that we are in a period where taxation is needed, but I expect that they will not bring us the easy things.
There are exemptions from tax payments that reach tens of billions, some of them may be justified, but they need to be taken care of.
I'm in favor of raising the VAT because I think there's no choice, but before that you had to do hard work that wasn't done."
MK Orit Farkash HaCohen (state camp): "It is national irresponsibility not to support this tax, those who read the Moody's report saw that we are also under negative surveillance, where in a few months Israel will be tested on its ability to carry out its plans It's true, it's not perfect, they didn't close offices, they didn't cut coalition funds, but this is not the time for populism."
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