The Israel Tax Authority collected a record NIS 509.3 billion in 2025, up 12% from 2024. Israel Tax Authority director Shay Aharonovich said today that state revenues from taxation crossed the revised collection target by 1% and were 8% above the original target for 2025.
Speaking at a conference held by the Israel Institute of Energy and Environment, Aharonovich said, “These figures are also expected to be reflected in the 2025 deficit summary, and I hope we will see a decrease in the deficit to below 5% – an exceptional and very strong figure compared with two years of war.”
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In the coming few days, the Ministry of Finance accountant general will publish the fiscal deficit figures for 2025. As of the end of November, the deficit stood at 4.5% of GDP. Total state revenues are expected to be slightly more than NIS 550 billion. In addition to the lion’s share of tax collection, which constitutes more than 90% of revenues, the state has additional revenues, for example from fees.
The significant increase in revenues this year came, in part, as a result of the successful implementation of the Tax Authority’s digital invoices program, which reduce loopholes for tax evasion, as well as tax hikes such as raising VAT, an additional surtax, and the Trapped Profits Law. In 2026, the cash flow to the Ministry of Finance is expected to increase by NIS 37 billion, up 7% from the strong 2025 figures. This is according to the Ministry of Finance chief economist’s collection target approved by the government as part of the 2026 budget, which stands at NIS 546 billion.
Published by Globes, Israel business news – en.globes.co.il – on January 6, 2026.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2026.
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