Israeli cabinet has approved the Budget for fiscal year 2013-2014. The VAT rate has been raised to 18% as from June 1, 2013 (previously 17%). The corporate income tax rate has been increased to 26% from 25% and the personal income tax rate will be increased by 1.5% for all income brackets as of January 1, 2014. In a further press release it was stated by the finance ministry that the corporate income tax rate will be increased to 26.5%, which is an increase of 1.5% instead of 1% as previously announced.