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
RELATED:Summer protests' shadow looms over Knesset winterLower turnout as 'social justice' hits streets again
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.
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.