According to an Order signed by the Minister of Finance, the VAT rate will be reduced from 16.5% to 15.5%, entering into force beginning on July 1, 2006 and applying on all transactions and import of goods whose date of liability to tax applies beginning from July 1, 2006.
Wage tax applied on Non-For Profit Organizations will be reduced to 7.5%, and wage and profit tax applied on financial institutions will be reduced to 15.5% on July 1, 2006 as well.
Detailed instructions regarding VAT charges on various transactions are published on the Israel Tax Authority's website in Hebrew at the following address: http://www.mof.gov.il/taxes/shinui_maam2006_tafrit.htm