Israel losing taxpayers — alarming data from authorities
New data from the Tax Authority and the Central Bureau of Statistics: over three years, about 270,000 Israelis left for long periods. Uncollected taxes rose by 150% to 1.2 billion shekels a year, with a forecast of 3.5 billion in five years. Those leaving are mostly affluent and specialists: in high-tech, growth of 150%; in medicine, over 100%. Professor Itai Ater warns of the risk of a 'point of no return'.
New data from the Tax Authority and the Central Bureau of Statistics show a sharp increase in the number of Israelis leaving the country for long periods. Over the past three years, about 270,000 people have left, which is already affecting budget revenues. Uncollected tax revenues have grown by about 150% and reached 1.2 billion shekels a year; according to forecasts, this amount could increase to 3.5 billion shekels in five years. The main losses are associated with representatives of the top income decile, who provide a significant portion of tax revenues. The composition of those leaving has changed: previously, they were mostly young people after military service, but now people aged 40–50 at the peak of their careers are leaving the country. In the high-tech sector, the number of specialists leaving has grown by 150%, and in the medical field by more than 100%. Professor Itai Ater of Tel Aviv University warns of the risk of intensifying negative dynamics: 'additional shocks could create a feedback effect, where each new departure strengthens incentives for others to leave—up to a point of no return.' It is not yet about an immediate existential threat, but the scale of the leakage of human and financial capital raises serious concerns. In the absence of timely government measures, the situation could lead to significant budget problems.