A list of major cuts and reforms in the budget proposal

By JPOST.COM STAFF
May 13, 2009 15:17
1 minute read.

Here are some of the major cuts and reforms passed in the cabinet for the proposed 2009-2010 budget:

  • Value added tax (VAT) will be set at 16.5% for the next two years, a 1% increase.
  • Taxation on gas-guzzling and polluting vehicles will be raised.
  • The ceiling on payments to the National Insurance Institute will be raised from NIS 38,400 to NIS 61,300.
  • Half of the convalescence pay due to Israeli workers for a period of two years will be frozen.
  • NIS 400m will be diverted towards renovating schools.
  • NIS 900m. will be allotted towards creating new jobs and encouraging employment.
  • NIS 900m will be diverted towards funding the Capital Investment Encouragement Law for a period of two years.
  • The government will launch a program that will aim to reduce the number of fraudulent receipts issued and cut tax evasion, which costs the country NIS 6 billion a year.
  • A new reform will attempt to reduce the consumer cost of television programming.
  • The government will attempt to reduce the number of foreign workers in Israel in order to create jobs for the unemployed.
  • Competition between the various health funds will be increased in order to reduce consumer spending on health services.
  • Child-care centers will receive additional funding in order to encourage the women's employment.
  • The marginal tax rate will be set at 44%, a 2% reduction.
  • The government will implement an across-the board 6.5% cut in all ministries.


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