Tax Advisors Call for Smarter Taxation
The Association of Tax Advisors in Israel has come out against reported plans for an across-the-board hike in the VAT tax, which they say will harm those sectors of the population already struggling economically.
“A sweeping raise of the Value Added Tax to 18 percent will increase the cost of food for the economically weakest members of society,” said Association president Yaron Gindi.
In place of the current proposal, Gindi advocated a differential VAT similar to that in Spain, where the tax would be higher for luxury items, lower for necessities.
He commended the new Finance Minister Yair Lapid on his intention to take urgent steps to reduce the state deficit, but cautioned against undermining sources of growth, such as small- and medium-size businesses.
In addition, Gindi criticized the current scheme of reporting to the Tax Authority: “It is inconceivable that only those who are independently employed or corporations have to file an annual [tax return], while many sectors of the population enjoy the right to remain protected from the law.”
He said that Israel should adopt the system existing in America and Western Europe, which makes declarations mandatory on everyone. Otherwise, it will be impossible for the government to attain its goal of increasing the tax burden equally.
This article appeared in print on page 6 of edition of Hamodia.
To Read The Full Story
Are you already a subscriber?
Click "Sign In" to log in!
Become a Web Subscriber
Click “Subscribe” below to begin the process of becoming a new subscriber.
Become a Print + Web Subscriber
Click “Subscribe” below to begin the process of becoming a new subscriber.
Renew Print + Web Subscription
Click “Renew Subscription” below to begin the process of renewing your subscription.
