Perhaps some remember some of the more prominent promises made during the Knesset elections. Shas leader Aryeh Deri earned votes when he promised “I will not sit in a coalition that does not support zero value added tax (VAT) on basic goods”, a statement that enjoyed the support of Prime Minister Binyamin Netanyahu. Even following elections Deri pushed his program, promising us that he is the one looking out for the “transparent Israelis”, the Israelis who are economically downtrodden and too often forgotten by the decision makers.

On Sunday, 3 Menachem Av the cabinet had its chance to make good on its promise, but preferred to vote against Deri’s zero VAT effort. Deri called the vote a blatant violation of the coalition agreement. Mertz opposition party MK Ilan Gilon submitted a zero VAT bill identical to Deri’s, which was voted down by the cabinet, prompting Gilon to explain “I submit the same bill every six months. The point, clearly the promises of the zero VAT bill passing prior to elections was an empty election promise, nothing more”.

Deri stated that a team in the treasury has been working to learn and understand the ramifications of the zero VAT bill passing into law and he remains confident the law will be passed as stipulated in the coalition agreement.

If the law is eventually passed, it will remove the 18% VAT on basic subsidized items. Such a move would lower the price of a load of standard bread by 78 agorot, a 1 liter bag of milk by 79 agorot, butter by 40 agorot and leben by 22 agorot.

Despite continued promises from Deri, the treasury is not backing the bill, which experts explain will cost NIS 1 billion and result in marginal benefit, saving a poor family NIS 50 monthly and a wealthy family NIS 30 monthly.

(YWN – Israel Desk, Jerusalem)