Israel planned to cancel the value-added tax (VAT) exemption for foreign tourists visiting the country, according to a comprehensive national economic plan issued by the finance ministry on Wednesday.
Foreigners visiting Israel are currently exempted from paying the 17-percent VAT on tourism services, including hotel accommodation and services, car rental, transportation, hospitalizations, among others.
The ministry noted that the plan will be submitted to the government for approval on February 23. After that, it will be submitted to the parliament for four rounds of voting, the final of which is scheduled for May 29.
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