The Finance Ministry also proposes cutting benefits for new immigrants.
The Ministry of Finance is proposing halving the $200 duty-free import exemption, cutting benefits for new immigrants, and levying the health tax on housewives. These are some of the measures to be included in the 2008 economics arrangements bill, which will be submitted to the cabinet for discussion next week. Ministry sources said today that the tax hikes were necessary in order to maintain fiscal discipline. Nevertheless, as every year, most of the items are included in the draft bill for the purpose of bargaining with ministers and MKs.
The Ministry of Finance also proposes levying a $1.50 tax on tourist overnights at hotels, abolishing discounts on electricity bills for low-income earners, means testing for nursing care for pensioners, withholding benefit allowances to claimants who owe property taxes to local authorities, abolishing the purchase tax exemption for Israelis buying homes in Eilat, and privatizing the 100 Israel Police emergency line. Tax breaks for new immigrants or returning Israelis can be transferred to their beneficiaries only if the person died before exercising his or her rights.
Published by Globes [online], Israel business news - www.globes.co.il - on July 29, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007