Israel Mulls VAT, Corporate Tax Cut
by Ulrika Lomas, Tax-News.com, Brussels
03 September 2015
Israeli Finance Minister Moshe Kahlon has revealed that he is considering tax cuts in order to boost the lackluster economy.
Kahlon told a conference of the Israel Lands Authority on September 3 that he is thinking about the merits of a 1 percent cut in value-added tax and a 1.5 percent reduction in corporate tax. Currently, the standard rate of VAT in Israel is 18 percent, and the corporate income tax is set at 26.5 percent.
Kahlon said that the measures could help to stimulate Israel's economy. Economic growth is now expected to undershoot the previous forecast of three percent, with a preliminary estimate indicating that second quarter growth slumped to 0.3 percent.
However, the Government must balance economy-boosting tax cuts against the need to raise revenue and achieve the Government's budget deficit target of 2.9 percent of gross domestic product for 2015/16.
To see today's news, click here.
Tax-News Reviews

A review and forecast of Cyprus's international business, legal and investment climate.

A review and forecast of Malta's international business, legal and investment climate.

A review and forecast of Jersey's international business, legal and investment climate.

A review of the latest budget news and government financial statements from around the world.
Stay Updated
Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.
By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.
To manage your mailing list preferences, please click here »
Network Blogs and Features
- stockpiling paper »
- Hong Kong Business and Work Culture: All you need to know »
- prospects looking rosy »
- The Diamond Industry in UAE »
- Brexit Ramifications For Ireland »
- Easy guide to starting a home-based business in Ohio »
- unintended consequences »
- Basic Guide to Set up a Home Based Business in Hong Kong »
- Life's never simple »
- Licensing options for payment service provider in UAE »