Value added tax in Israel was increased from 16% to 17% about three months ago. According to leaders of Israel’s taxi drivers union, representing over 20,000 cabbies, due to the fault of treasury officials their meters have not been updated. As a result, their meters charge fares 16% VAT but at month’s end, they must pay 17% VAT to tax authorities.

Union officials estimate an average driver loses 5 NIS a day, 150 NIS monthly, or collectively speaking, 100,000 daily and 9-10 million NIS monthly. They feel the situation is intolerable and they are frustrated by the foot-dragging among officials responsible for giving the green light to have meters adjusted. As such, the union has taken its case to the High Court of Justice.

(YWN – Israel Desk, Jerusalem)