Israel collects record tax revenues in August

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Tax revenues totaled NIS 204.6 billion in January-August boosted by the sale of Mobileye shares to Intel and the offering by Tamar Petroleum.

Figures published today by the Ministry of Finance show that state tax revenues totaled a record NIS 27.7 billion in August. The Ministry of Finance noted that this included NIS 3.4 billion in capital gains tax on the sale of Mobileye shares to Intel and the offering by Tamar Petroleum.

Tax revenues totaled NIS 204.6 billion in January-August, 7.2% more in nominal terms than in the corresponding period last year.

Spending by government ministries in January-August, excluding payment of principle and interest on government debt, totaled NIS 196 billion, 9.6% more than in January-August 2016, using the same measuring definitions. Spending by civilian ministries rose 8.4%, while defense spending was up 13.9%. Excluding changes in the dates of payments, however, brought the rise in defense spending down to 5.9%.

The record tax revenues pushed the current budget deficit over the past 12 months down to 2.3%, after it climbed to 2.6% two months ago. The 2017 budget deficit target is 2.9%. The state treasury is still owed NIS 1 billion in tax revenue from the Mobileye deal and the Tamar Petroleum offering. The Israeli shareholders in Mobileye are expected to pay NIS 4 billion in capital gains taxes, and the Delek Drilling Limited Partnership (TASE: DEDR.L) is expected to pay NIS 500 million more on the sale of 9.2% of the shares in the Tamar gas reservoir to Delek Petroleum.

Published by Globes [online], Israel Business News - www.globes-online.com - on September 6, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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