Israel’s state revenues from taxes amount to 10.9 billion shekels ($2.1 billion) in November. This month saw the return of about NIS 900 million in value added tax (VAT) returns, which had been deferred from September-October due to the sanctions in the tax divisions.
The correct attribution of the return would bring the collection to NIS 11.8 billion this month, compared with NIS 11.5 billion in October 2002. It should be recalled that October 2001 signaled the start of the decrease in tax collection brackets. The revenue figures point to a continuing recession in the economy and stabilization of collection at a low level.
Since the beginning of 2002, the state's revenues from taxes amounted to some NIS 134.3 billion, a real decline of about five percent compared with the corresponding period last year. Deducting the legislative changes, the collection for the January - November 2002 period diminished in six percent, a real decline of 12 percent in the income tax department and an increase of one percent in the customs and VAT department.
Collection of income taxes in January-November 2002 amounted to some NIS 73.4 million, a real drop of about 11 percent compared with the corresponding period last year. Deducting the legislative changes, there was a real decline of 12 percent. It should be noted that the revenue in the department rose at a real rate of some 20 percent in 2000 compared with 1999.
In the first nine months of 2001 the department revenue still rose at a real rate of one percent compared with the corresponding period in 2000. From October 2001 and until the current month, the department revenue has stabilized at a low level which constitutes a real decline of more than 10 percent compared with the collection level in the years 2000-2001.
Collection of the customs and VAT department in the months January- November 2002 amounted to some NIS 57.5 billion, a real increase of four percent compared with collection in the corresponding period in 2001. The department revenue in this period includes an addition of about NIS 1.6 billion from raising the excise tax on diesel oil, purchase tax on cigarettes and VAT.
Deducting the effect of legislative changes, the collection from the beginning of the year would have risen at a real rate of about one percent. This rise was achieved despite the fall in product and the freeze in private consumption. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
