'We take protesters more seriously than any gov't'

Steinitz tells Army Radio that tax measures passed from Trajtenberg report wouldn't have been passed if tenets of economy not protected.

By JPOST.COM STAFF
October 30, 2011 18:25
1 minute read.
Finance Minister Yuval Steinitz

Finance Minister Yuval Steinitz_311. (photo credit: Reuters)

Israel takes the social protests more seriously than any other government in the world, Finance Minister Yuval Steinitz told Army Radio Sunday.

Steinitz cited tax measures from the Trajtenberg Report passed at a special cabinet meeting in Safed on Sunday, which include increased taxes on the wealthy, higher capital gains taxes, the removal of energy taxes and the provision of tax credits for parents of young children. Steinitz went on to say that such measures would not have been possible had Israel not protected the fundamental tenets of its economy, and warned that economic tumult abroad can still affect the economy in the future.

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Steinitz made the comments just before the government passed tax recommendations from the Trajtenberg Report.

The tax measures included 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.

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.


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