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Israel set to raise VAT on OECD’s recommendation

01 June 2012

Salman Shaheen - ITR


The OECD has recommended that Israel consider a VAT increase, which advisers believe may come next month.

The OECD’s Economic Forecast Summary for Israel cautions the government to avoid substantial overshoots of deficit targets.

“Cutbacks in tax exemptions and a modest hike in the rate of VAT should be considered to help square deficit consolidation with spending requirements,” the OECD said.

Tal Hamdi of Herzog Fox & Neeman points out that as a consequence of the international slowdown in...



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