Tax receipts rise as markets soar

Tax revenues in the January to October period were NIS 9.7b. higher than the target set in the 2010 budget.

By MIRA AWAAD
The government had a budget deficit of NIS 2.4 billion in October 2010, according to preliminary estimates released Wednesday by the Finance Ministry’s accountant-general.
The government had a budget deficit in eight of the ten months of the year to date. Tax revenues totaled NIS 15.8b. in October, 13 percent more than the NIS 14b. in revenues in October 2009.
Tax revenues in the January to October period were NIS 9.7b. higher than the target set in the 2010 budget. The budget deficit narrowed to NIS 15.9b.
in January-October (out of the original budget plan of NIS 42.9b.) from a deficit of NIS 25.9b. in the corresponding months of last year.
A breakdown of tax revenues shows that the capital market rally of recent weeks boosted capital gains taxes to NIS 203 million in October, 14.5% more than in October 2009. Income taxes, however, were NIS 2.9b., or 0.8% less than in the corresponding month.
The heated real estate market also contributed to the state’s tax revenues. Property taxes totaled NIS 567 million in October, 16.7% more than in the corresponding month, purchase taxes rose 10%, and betterment taxes rose 24.3%. Most of the increases were in the Tel Aviv and Rehovot areas, from three large land deals made back in 2009 on which the taxes were only paid in October of this year.
Conversely, tax collections on real estate transactions fell sharply in the central and Sharon areas.