Finance Minister Moshe Kahlon must present an updated budget to the Knesset Finance Committee if he wants it to approve his new tax cuts, opposition MKs demanded Thursday, but the committee dropping cutting value-added tax from 18 percent to 17%, anyway.
Kahlon was supposed to present the budget to the committee on Monday, but canceled his visit in light of the VAT cut, which came after his announcement last week that the Finance Ministry had discovered a tax surplus. On Tuesday, he announced cuts to taxes on beer and hard liquor. All of these changes require the December 2015-2016 budget approved in a first reading in the Knesset last week to be updated.
According to MK Erel Margalit (Zionist Union), the entire process of presenting the budget and lowering VAT was improper.