Israeli Finance Ministry Has Tax Contingency Plan, Says Report

by Robert Lee, Tax-News.com, Hong Kong

20 December 2001

According to reports this week in the Israeli media, the Ministry of Finance has prepared a contingency plan in case ministers reject its proposals to implement an across-the-board 2% cut in current spending.

The plan, according to Israeli newspaper Globes, includes the introduction of a new tax bracket, the raising of the ceiling on national insurance payments, and a health tax for the country's wealthiest citizens. It is understood that no decision has yet been reached on whether new taxes will be imposed on those earning more than NIS 50,000 per month. According to the paper, however, the Finance Ministry has strenuously denied the existence of any such plans.

Although there is due to be a special debate on the state budget today, Globes reporter Zeev Klein remained uncertain as to whether the Ministry's contingency plan would come to light in that context. The Prime Minister's office is reportedly wary of introducing any new taxes in the current economic climate, particularly on wealthy taxpayers.

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

To manage your mailing list preferences, please click here »