The Manufacturers Association of Israel on Wednesday urged political parties to adopt its plan of “pro-growth policies,” which it said could generate an additional NIS 40 billion of tax revenues.
The program would cost NIS 5.9b. and lead to an additional jump in GDP of 2.2 percent and 39,000 new jobs, it said.“A growing and competitive business sector is in the interest of the state and its citizens who will almost exclusively supply a funding source for the government’s activities,” MAI president Shraga Brosh said.
The program calls for reducing regulation, investing in technology training programs and freezing expected increases in taxes on National Insurance Institute payments and property.
It calls for expediting the process of connecting industry to Israel’s new natural-gas supply and scrapping distorted tax policies on foreign agricultural workers.
It also calls for greater incentives for investments in R&D and capital investments, promoting tourism and exports, boosting small- and medium- sized businesses and lowering barriers on financing the diamond industry and agriculture.
Clearing red tape is the key, Brosh said, adding that Israel has fallen 14 slots in the World Bank Ease of Doing Business Index since 2007.
If implemented, the MAI said, its program would lead to 6.5% higher growth over five years, strengthen small businesses and increasing the supply of apartments by 20,000 to 25,000.