Deri threatens government over 0% VAT

Economy Minister Aryeh Deri says that if the Finance Ministry reneges on the agreement to lower VAT to zero on basic products, “I will see it as a breach of the [coalition] agreement so severe that it may affect the wholeness of the government.”

Deri is speaking after reading media reports saying the Finance Ministry does not intend to cancel the value added tax on basic food products, an issue that for Shas, Deri’s party, was a deal-breaker for signing the coalition agreement.

“I saw stories in the press so I decided to respond immediately so that this issue is clear […] We will stand up to our commitments and I expect them to stand up to theirs,” says Deri.

His threat to the government’s wholeness refers to the fact that in a 61-strong coalition, even one resignation could make the government collapse.