Gov’t to approve Trajtenberg tax recommendations

Tax measures include reductions in energy prices, credit tax for parents of children up to age 3 and 2 percent “wealth tax” increase.

PM Netanyahu with Prof. Manuel Trajtenberg 311 (R) (photo credit: Marc Israel Sellem)
PM Netanyahu with Prof. Manuel Trajtenberg 311 (R)
(photo credit: Marc Israel Sellem)
The Prime Minister’s Office announced Saturday that the government will pass tax recommendations from the Trajtenberg Report in a special meeting in Safed 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.
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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.