Flug Swats VAT Plan

Bank of Israel Governor Karnit Flug took aim at Finance Minister Yair Lapid’s VAT exemption for new home buyers, telling the Knesset Finance Committee it is likely to make a bad housing situation even worse. She warned it will raise prices, do little to help weak populations, will be hard to administer and swell the national debt. Flug’s remarks came just hours before the Knesset passed the bill in a preliminary reading.