Netanyahu: New taxes imposed to cover added security and social costs

The 1 percent VAT increase on purchases, across-the-board budget cuts and other austerity measures to be approved at Israel’s next cabinet meeting will not affect defense, education and social welfare appropriations. Netanyahu said that recent regional regime changes mean that Israel has to spend more on defense to maintain its balance of strength and face up to the challenges of a nuclear Iran, missile threats, cyber warfare and a colossal influx of weaponry to the region.