Ministry of Finance chief economist and government revenues director Dr. Michael Sarel resigned today over his objections to Minister of Finance Yair Lapid's proposal to exempt from VAT young couples buying their first home.
"In view of your decision to institute an exemption from VAT for a group of beneficiaries for the purchase of new apartments, I hereby submit my resignation. Please note that I am distributing this letter to parties outside the ministry to ensure that my name will not be connected with this policy measure," said Sarel in his letter of resignation.
Sarel joined the Ministry of Finance in 2012, after serving as chief economist at Harel Insurance Investments and Financial Services Ltd. (TASE: HARL). In the early 2000s, he worked at the Bank of Israel's Research Division, and he served as an advisor at the World Bank for two years in the 1990s.
Sarel says that the proposal to exempt first-time homebuyers from VAT is "wrong from almost every possible perspective and it will result in higher home prices." He adds that he has resigned, because many of Lapid's measures are taken against the advice of top Ministry of Finance officials.
Published by Globes [online], Israel business news - www.globes-online.com - on March 19, 2014
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