March tax revenues totaled NIS 23.9 billion, higher than the NIS 22 billion forecast and 11% more than revenues in March 2014.
Figures published by the Ministry of Finance today show that the March budget deficit was NIS 1.2 billion, making the deficit over the past 12 months only 2.63% of GDP. Government spending totaled NIS 30.5 billion, including NIS 21.7 billion in spending by government ministries, NIS 2.7 billion in interest payments, and NIS 6 billion in transfer payments for the National Insurance Institute.
Since the beginning of the year, spending by government ministries has totaled NIS 57.8 billion, up 2.8%, compared with the corresponding period last year.
The most prominent figure is tax revenues, which totaled NIS 69.4 billion in January-March 2015, up 4.4%, compared with the corresponding period last year. Revenues from direct taxes and indirect taxes rose 12.6% and 9.7% in March, respectively.
The Ministry of Finance said that tax revenues were higher than expected because various government programs that would have decreased revenues were not implemented when the government was dissolved, such as 0% VAT on purchases of first apartments, which would have cost the treasury NIS 2 billion. In addition, the closing of tax loopholes and higher taxes on foreign workers will add another NIS 1 billion to tax revenues this year, putting the 2015 tax revenues forecast at NIS 261.8 billion.
"Tax revenues have exceeded the forecast by NIS 3 billion since the beginning of the year: revenue from direct taxes by NIS 2.9 billion and revenue from fees by NIS 100 million, while revenue from indirect taxes matched the forecast," the Ministry of Finance said. "Of the extra revenue from direct taxes, NIS 700 million is attributable to taxes on a dividend distributed by a large company in December 2014."
The increase in housing purchases pushed March tax revenues from this source up to NIS 903 million, 31% more than in March 2014. The number of housing deals rose 22% in March and 7.5% in January-March.
Published by Globes [online], Israel business news - www.globes-online.com - on April 15, 2015
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