After Prime Minister Binyamin Netanyahu announced his planned zero value added tax on basic goods for the incoming administration, many are questioning why this was not implemented earlier, including former Finance Minister Yair Lapid. Lapid questioned why the prime minister had suddenly announced his financial vision, alluding to the fact that the plan was first announced recently by Shas party leader Aryeh Deri and Netanyahu has already begun courting the chareidi parties to bring them back into the coalition.

Lapid announced that the prime minister is acting like voters are four-years-old and do not know better.

In fact, the idea of zero VAT on basic good was introduced about a month ago by former Minister of Environmental Affairs (The Movement) Yair Peretz, but at that time, the prime minister nixed the plan, explaining to Peretz “you do not understand macroeconomics”. Fed up with the administration, Peretz resigned from the cabinet before the Knesset decided to move to elections, calling on his party to follow his lead and break from the coalition.

Many are asking what happened as Mr. Netanyahu has been prime minister for the last six years and if one includes his first term in office, he has been prime minister for a total of about nine years, yet no zero VAT plan for basic goods. Columnist Ben Caspit writes in his Maariv column on Tuesday 17 Kislev that there will never be such a policy for as long as Netanyahu is prime minister, despite promises now, ahead of elections.

Experts explain that even if the plan is implemented, it is only intended for government-regulated items such as basic bread, butter and the like so the relief provided to families will be minimal at best.

(YWN – Israel Desk, Jerusalem)