(haaretz).Prime Minister Benjamin Netanyahu has backed down from a plan to impose a Value Added Tax on fruits and vegetables, finance ministry officials said Monday.
The cancellation of the tax leaves a hole of NIS 1.8 billion in the state budget, meaning the government will need to find a new source of revenue by July 15.
According to the plan, the VAT was to increase in three stages, eventually reaching a rate of 15.5 percent two years from now. It was to be imposed on fruits, vegetables and tourism-related products.
"Part of my job is to listen to the public, said Netanyahu, "and I've come to the conclusion that this is not the time for a new VAT."
