Adv. (CPA) Liat Faig-Neuwirth, head of the VAT Practice at our firm, participated in the television segment “Open Account” on Channel 14 with Shany Ben Yaish Murak.
Adv. (CPA) Faig-Neuwirth referred to the proposal of the Knesset member, Mr. David Bitan, to lower the VAT on basic food products to 8% and explained the shortcomings of a differential VAT and the complexity of implementing such a move in Israel. She considers the concern that the reduction will not reach the consumers at all and given the significant decrease in state revenues and revenues from tax collection and the increase in the state deficit. Additionally, Adv. (CPA) Faig-Neuwirth explains, that the differential VAT falls short in its effectiveness and efficiency in treating inequality from direct progressive taxation such as income tax (positive and negative), social security and pensions.
