Some 400 people marched through Tel Aviv on Saturday evening to protest the cost of living and the increase in VAT, Army Radio reported.
Protesters, that started marching from Tel Aviv Museum, called out "the people are against VAT."
In Haifa, some 200 people marched from Linn Square in Kiryat Eliezer to Bat Galim neighborhood in the city to protest the VAT hike.
The 1-percentage point increase, raising the VAT to 18%, is scheduled to go into effect at midnight on Saturday.
The price of gas will also be raised at midnight in NIS 0.26.