Welfare Minister (Labor) Yitzchak Herzog estimates that the suggested implementation of value added tax on fruits and vegetables will not pass due to opposition from Shas and Labor party cabinet ministers.

Speaking to manufacturers on Thursday, Herzog indicated he does not believe that the new decree will be incorporated into the final budget.

Shas ministers voted against the budget earlier this week because of the VAT, which is being increased from 15.5% to 16%, decrying efforts to impose such a tax on produce, a move that Shas leader Minister Eli Yishai stated would result in an economic deathblow to many families.

(Yechiel Spira – YWN Israel)