Foreign Minister Avigdor Liberman said Wednesday that Prime Minister Binyamin Netanyahu did not consult with him regarding a tax hike proposal that he and Finance Minister Yuval Steinitz decided Tuesday that they would bring to the cabinet on Monday.
If the proposal passes, value-added tax is set to rise by 1 percent or more. Each 1% hike in VAT (which currently stands at 16%) is expected to enrich the government coffers by NIS 4 billion per year. The cabinet will also be asked to make an across-the-board cut for government ministries totaling NIS 700 million.
Israel Beiteinu leader Liberman told Israel Radio on Wednesday morning that he would have expected the prime minister to consult with the second largest party on such a decision, and asserted that he would oppose the move.