Tax Authority Director: "I don't see tax cuts in 2027"

Shai Aharonovich, Director of the Israel Tax Authority, stated at the "Real Estate Truth" conference in Eilat that he does not foresee tax cuts in 2027, and that the state will need additional revenue sources totaling approximately 40 billion shekels next year. He supported an annual tax on vacant land and a requirement to report rental income.

Shai Aharonovich, Director of the Israel Tax Authority, said at the "Real Estate Truth" conference in Eilat that he does not foresee tax cuts in 2027. According to him, state expenditures in the coming years will require finding additional revenue sources totaling about 40 billion shekels next year, beyond the base and expected economic growth. Aharonovich presented three ways to address budget needs: increasing the deficit, cutting services, or increasing revenues. He supported imposing an annual tax on vacant land as an alternative to raising VAT, corporate tax, and the marginal tax, and emphasized the need for a requirement to report rental income. Aharonovich estimated that the fight against the black market could bring in an additional 7-8 billion shekels per year, and linked this to the fight against protection rackets. He also addressed weakness in the housing market and the need for a market of building contractors, as well as expanding the participation of ultra-Orthodox men in the labor market as a factor that would help reduce taxes in the future.

Tax Authority Director: "I don't see tax cuts in 2027"