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
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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.
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.
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.