Value-added tax rose 1 percentage point to 18 percent at midnight on Saturday.
At 18%, the tax has returned to its highest ever, matching its level in
1992-1993 and during the period from June 15, 2002, to March 1, 2004. The tax
affects every product sold in Israel (except in the Eilat area) with the
exemption of fruit and vegetables.
And first thing on Sunday, the cost of
gasoline rises 3.58%.
One liter of 95 octane gasoline will cost NIS 7.52,
69 agorot more than last month. The cost of gasoline is updated on the first day
of every month. Part of the rise is due to the increase in VAT.
Saturday night, several hundred social justice activists demonstrated in
Jerusalem, Haifa and Tel Aviv against the price hikes.