Lapid Approves Stiffer Taxes on Luxury Goods

If you haven't bought your yacht, private plane or new SUV yet, you'll be paying more from next Monday.

Living fabulously will cost more after Finance Minister Yair Lapid yesterday signed an order imposing taxes on a range of luxury goods, including yachts, private planes, furs and jumbo-sized refrigerators.

The new fees are expected to add an estimated NIS 110 million annually to state revenues. While that sum may not go a long way toward closing the budget deficit, the treasury said yesterday the new taxes will also help to close the gaps between rich and poor in Israel.

Under the rules signed by the finance minister, luxury cars will be subject to a higher purchase tax from September 1: an additional 20% on sticker prices exceeding NIS 300,000. It comes on top of the 83% purchase tax on all imported vehicles.

From Monday, the tax on sport utility and all-terrain vehicles and rises to 50% from 30%. The tax on TVs with screens exceeding 50 inches will increase to 30% from 15%, and a NIS-550 tax will be slapped onto home refrigerators with a capacity that exceeds 800 liters.

A host of high-end goods will be subject to purchase taxes for the first time ever. Private planes and yachts will be subject to a 15% tax, while furs and antique furniture will be subject to a 20% tax. Jacuzzi-style hot tubs with a size exceeding 100 centimeters in diameter will be subject to a 19.2% tax.

Bloomberg