News Briefs

  2/17/2010, Adar 3, 5770

PM To Propose Tax on Fruits and Vegetables

Prime Minister Benjamin Netanyahu is once again considering imposing value-added tax on fruits and vegetables. Last year he proposed the full 16.5% VAT, but was strongly opposed.  Now he wants a tax of 1%.

Fruits and vegetables are currently exempted from VAT altogether. Adding a tax will require Knesset approval. 

A 1% VAT is expected to generate revenues of about NIS 100 million.