VAT increase will mean many in Israel go hungry - opinion

We, at The Soup Kitchen, were not at all surprised by the statistics presented in the Latet organization’s Alternative Poverty Report for 2024. The report stated that 1.24 million children in Israel are living in poverty, which comprises 39.6% of all children in the country.

There is an overall total of 678,200 families living in poverty, comprising 2.756 million people.

Following four decades of activity, The Soup Kitchen stands at the forefront of the fight against poverty in Israel. As such, I feel obliged to impart a warning: The planned rise in VAT, together with other economic increases, could lead to a profound social crisis, the likes of which we have not seen since 2003.

We are already noticing worrying signs at The Soup Kitchen. Since the outbreak of the war, requests for hot meals have increased by 40%. Families who once assisted us with donations are now requesting assistance, and this is occurring even before the new rates come into effect.

The one percent rise in VAT may sound like a modest increase, however, for families already finding it challenging to make it through the month, it constitutes a hard and painful blow. Add to this the increase in the prices of electricity (3.8%), water (3.4%), and municipal property tax (up to 5.29%), each household will be facing a financial strain of thousands of shekels a year.

This blow comes precisely at the time when prices of basic goods are soaring relentlessly. The price of a basic basket of goods necessary for each family’s daily existence is a burden that is becoming unbearably heavy to bear. What was once considered a basic purchase of food products has become a challenge for many families. 

The data shows that the average family is expected to lose thousands of shekels each year as a result. For many, this amounts to the difference between providing a hot meal for their children and having to turn to us for assistance.

Our experience from 2003 shows that the moment these increases come into effect, families begin turning up on our doorstep in states of true crisis. This corresponds to the data put out by the National Insurance Institute, stating that the new economic increases are expected to bring approximately 37,000 additional people below the poverty line.

A plea to decision makers

We, at The Soup Kitchen, will continue doing all that we can. We shall extend our main kitchen, recruit more volunteers, and seek more donors. However, the reality has taught us that aid organizations alone will not be able to bear the huge burden of the increasing requests for help. 

I appeal to the decision makers to stop for a moment and contemplate the real consequences of this increase in rates. Give a thought to the families who at present are already struggling to purchase basic goods at the supermarket; consider the senior citizens who will be compelled to choose between medication and food; think of the children who will be going to sleep hungry.

Alongside the need to balance the budget, the country has to reach out to the weak. If the stick is already waving about in the air, ready to pass its verdict, it is imperative that you think about the carrot, too – support programs and tax relief for struggling families. This is the only way to ensure that these families do not collapse under their financial burden.

Rabbi Simcha Krakowski, founder and CEO of The Soup Kitchen (Beit HaTavshil)