The State is about to invest billions in a new railroad to eilat, a new port in eilat, (which will circumvent the suez canal - port and rail) and a new airport for eilat. Cancelling the VAT seems a pretty small price to pay. Eilat is on the verge of an economic boom.

About time. Why should the rest of Israel subsidise Eilat? Let them pay! Hotels and eateries have been over charging for years. Gas is about the only item that is cheaper. Tip for businesses...lower your prices and improve your service.

The VAT in Eilat can be also 5%,it does not have to be 18% !!! The tax authorities do not understand why VAT was created. It is not the lack of VAT collection that is missing,it is the Black Money not declared as Income missing. By applying 1% VAT on fruits and vegetables,the businesses in the "shuk"will have to declare real figures as income,compared to today,when they declare whatever they want. I hope Lapid or his friends read this comment.

Get over yourselves !! If its good enough for the rest of the hard working families in Israel then its good enough for you too.