Government to approve Trajtenberg recommendations
The government is expected to approve the Trajtenberg Committee recommendations for reforming the economy on Sunday. The tax measures include the cancellation of NIS 2.5 billion in energy taxes, which will reduce the price of gasoline, diesel and coal; a NIS 5,000 annual tax credit for parents of children up to the age of three; and a 2 percent “wealth tax” increase on incomes over NIS 1 million.I can't wait to see what taxes they raise to offset this (well, you didn't think they were going to cut spending, did you?).
Furthermore, import duties on products not produced in Israel will be canceled, making them more affordable to consumers, while the corporate tax rate will rise to 25%. Taxes on capital gains will rise by 5% as well.
Once approved, the changes will have to pass the Knesset before going into effect on January 1. The income and corporate tax changes will be reevaluated in 2014.
By the way, "products not produced in Israel" include cars - the last time a car was produced in Israel was 1980. You don't really think they're going to give up that 116% and up tax on imported cars, do you?
Color me cynical.
Labels: Israeli economy, Trajtenberg Report
posted by Carl in Jerusalem @ 1:22 PM
1 Comments:
They're playing with the chairs of the Titanic in Israel.
You didn't really think they would reduce all taxes and burdensome regulations on individuals and businesses, now did you?
Nothing much will change in Israel for most people.
What could go wrong indeed
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