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country-icon Israel


Confirmed 1% VAT raise from 2025

The Finance Committee of the Knesset has given the green light for the 1% raise of the Vule Added Tax (VAT), from the current 17% to 18%. This change will take effect as of January 1, 2025.

It is the first adjustment to the VAT rate since 2015, when it was reduced from 18% to 17% on the initiative of Moshe Kahlon, the former Minister of Finance. With the new rate in 2025, the government hopes to stimulate economic growth and generate additional revenue of NIS 7.2 billion.

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