Finance Minister Yair Lapid faced formidable opposition from within the coalition, with several ministers threatening to vote against his new budget Tuesday, and opposition leader Shelly Yacimovich whipping out a bomb drawing indicating that Lapid crossed her red lines on budgetary matters.
"I will vote against the budget the way it looks now," Environmental Protection Minister Amir Peretz said. "I oppose cuts in child benefits, increases in VAT and cuts in funding of daycare centers. This budget hurts working mothers."Peretz plans to propose differential VAT, meaning a higher rate for luxury items and lower for necessities, in the next ministerial meeting on the budget, saying it has the potential to help weaker populations.
In a Knesset Economics Committee meeting, Tourism Minister Uzi Landau spoke out against the planned cancelation of the exemption of tourist industries from VAT.