Report: Finance Ministry considering tax hikes to fund ongoing Gaza war

The Finance Ministry is considering wide-ranging tax hikes in the coming months in order to fund the ongoing war with Hamas in Gaza, according to a television news report.

The increase under consideration, according to the Kan broadcaster, would apply to both VAT and income tax, in addition to tax hikes already included in the most recent amendment to the 2024 budget.

“If the war expenses continue at this rate, we’ll have no choice but to raise taxes,” senior officials are quoted as saying in the report.

The report comes days after ratings agency S&P Global cut Israel’s long-term ratings to A-plus from AA-minus amid heightened confrontations with Iran over the past week and the already elevated geopolitical risks for Israel.

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