The Knesset’s Finance Committee approved on Thursday morning of the reduction of VAT by 1% to a rate of 17%. The change will be implemented as of October 1st.
“I support the reduction of VAT, although I believe that the extra money could have been used for many other purposes, such as increasing child stipends. I do not think that this move will achieve its goal and lead to price reductions,” the committee’s Chairman, MK Moshe Gafni said.