Finance Ministry and Shas Party officials met during the weekend to discuss alternatives to the removal of a Value Added Tax (VAT) exemption on fruits and vegetables. They discussed the possibility of gradually raising VAT on produce over the next two years. In addition, the officials proposed reducing income tax and slowing down corporate tax at the same pace as the VAT tax increase.
Fruits and vegetables were exempt from VAT until a week ago. Shas and other parliamentarians call the tax unfair as it harms the poor on staple food items.