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Dec 4, 2025
taxes going up again?
After a long war that looks like it might soon be restarting, at least on some of its fronts, it is understandable a government would raise taxes. it has an expensive war to pay for, and semeingly will continue to have to pay a lot for an unknown amount of time. Finance Minister SMotritch and Prime Minister Netanyahu have both been bragging how strong the Israeli economy is despite the war, and there are defintiely signs of it being strong, but inflation has also been higher hurting people in the pocket.
Smotritch has said he will not impose new taxes on the public (it is an election year) and when Netanyahu said he wants to increase the defense budget by 350 million shekels over the next ten years Smotritch basically said over my dead body and he wont agree to raising taxes to cover it - he said the PM himself can take responsibility for that.
The other day Smothritch signed an order allowing local municipalities to increase the arnona tax on residents. Today Smotitch explains himself saying that isnt a tax we put on residents, the local municipality does, so dont blame us - they are allowed to increase the arnona rate, but we suggested they dont. Blame them.
The other day Smotritch announced he will soon be signing an order to double the VAT exemption on personal imports (aka online shopping from Amazon and Ali Express, etc) to $150 or maybe even $200, though he has not yet signed the order, which make consumers happy. Then it becomes known that he is considering raising VAT to 19% (PM Netanyahu seems to be opposed to this at this time).
Recently the Ministry of Transportation announced prices are set to go up once again in January after a very recent increase. After public outrage they cancelled that. Did they not think people would be upset when they initially announced it?
This is very strange for an election year. I guess they feel confident their base will support them no matter what they do, even increasing already high taxes.
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Labels:
Betzalel Smotritch,
taxes
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