Finance Minister Dr. Yuval Shteinitz on Monday expressed his commitment to the levying of value added tax on fruit and produce, taking a position that puts him on a collision course with Prime Minister Binyamin Netanyahu as well as chareidi coalition members.

Earlier in the day, the prime minister stated he was abandoning his plan to levy the tax on produce, a move that leaves the state budget with a NIS 1.8 billion hole, the funds that the tax would generate.

Shteinitz on Monday met with party faction members stating he plans to pass the new tax “with or without Shas”, with Shas party leader Minister Eli Yishai being a leading opponent of the planned tax. Shteinitz is far from pleased with the announcement made by the prime minister.

Shas appears equally as determined, signaling the VAT tax on produce is a deal breaker and implementation of the tax will be deemed as a major coalition violation.

Minister of Welfare & Social Services (Labor) Yitzchak Herzog also warns the tax will deliver a blow to low-income families, opposing the move. Kadima opposition party officials are accusing the prime minister of folding under pressure from the chareidim and lacking integrity for not moving ahead with the tax. Kadima officials added that Netanyahu never misses an opportunity to prove one cannot believe him, even pertaining economic matters.

(Yechiel Spira – YWN Israel)