New economic measures, as well as tax breaks recommended by the Trajtenberg committee, and subsequently approved by the government, came into effect today.
Hebrew daily "Yediot Ahronot" reported today that government ministers, including the prime minister, will receive a NIS 1,000 monthly pay hike in salary. In the upcoming year, Prime Minister Benjamin Netanyahu will earn NIS 47,000 a month, and ministers will earn NIS 41,700 a month.
The decrees: fuel and arnona (local property tax) increases
New economic measures will also go into effect today: a 3% increase in arnona (local property tax) throughout the country and a 5% increase in capital gains tax, which will directly affect many pensions, as the minimal provision of salaried workers towards their pension will rise to 12.5%.
Furthermore, the price of self service 95-octane gasoline rose by NIS 0.12 per liter, to NIS 7.35. More price hikes are likely throughout the year. Bus fares on urban routes rose NIS 0.20.
Benefits: 1,000 products will become customs duty-free, and income tax rates will fall
The most important tax break is the granting of two income tax credit points to working mothers of children under five. In addition, fathers of children under three will also receive two income tax credit points, which amounts to a few hundred shekels a month.
Employees who earn NIS 8,000-14,000 a month will receive a monthly income tax break of tens of shekels. At the same time, tax rates for employees in the upper tax brackets will increase by 3%.
Another Trajtenberg committee recommendation that will be implemented is the cancelling of customs duties on a number of items not produced in Israel, such as toys, electronic equipment, and car tires.
Published by Globes [online], Israel business news - www.globes-online.com - on January 1, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012