2024-04-04 05:52:36
Last night, March 11, the Knesset approved proposals to increase VAT in Israel from 2025. The rate will increase from 17 to 18 percent, and this may lead to an automatic increase in prices for products and various services.
ICE writes about this.
VAT is a tax levied on the end consumer, so an increase in this rate will lead to an increase in prices for a wide range of goods, including food, durable goods, entertainment services, and others. This is because producers will incur additional production costs, so they may pass on some of the additional tax burden to consumers.
All this will lead to increased costs for the population, including the cost of a basic food basket, which is already about 1,100 shekels in retail chains.
Let us note that food prices in our country have continued to rise in recent years, especially during the war, despite all the government’s efforts to curb this trend.
“Cursor” wrote earlier that from April 2024 the minimum wage in Israel will increase. Its figure will increase from 5,572 to 5,880 shekels, and the increase will be retroactive.
We also wrote that the Ministry of Finance plans to introduce a VAT tax on any online purchases and subscriptions in Israel. It is expected that such a decision will help replenish the state treasury by 1.1 billion shekels.
2024-04-04 05:52:36