Prime Minister Benjamin Netanyahu has instructed the Ministry of Finance not to consider any tax increases until the end of 2024, according to journalist Gad Lior at Ynet. This directive comes amid concerns about government deficit and increasing war-related spending, with potential measures being considered such as postponing a planned 1% VAT increase from January 2025 to July 2024 and eliminating the VAT exemption for online purchases abroad up to $75.
Government economic adviser Avi Simhon has stated that there is no possibility of agreeing to a tax increase at this time. This stance is particularly strong given the current state of the economy, which is starting to recover and expects rapid improvement in the macroeconomic situation in the near future.
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