Fischer encouraged by tax hikes

Stanley Fischer: The latest measures, including raising VAT, are not the end of the process, and more tax hikes are likely.

"Last month, I was somewhat critical about the government's fiscal policy, but what I've seen in the past two days is very serious progress, and very responsible conduct by economic decision-makers. I hope that within no more than a few days, we'll see a package that will really change the Israeli economic situation, and allow us to continue to grow at a very respectable rate," said Governor of the Bank of Israel Prof. Stanley Fischer today, after a meeting with Prime Minister Benjamin Netanyahu and Minister of Finance Yuval Steinitz on the 2013 state budget.

Fischer said that the latest measures, including raising VAT, were not the end of the process, and more tax hikes were likely.

Netanyahu said, "Even after the steps taken, families in Israel, the middle class and the poor will be left with more money in their pockets. I remind you that, in a few days, we will bring free education from the age of 3. Hundreds of families will save NIS 800 a month. We brought credit points for working families worth hundreds of shekels more a month, which came into effect in January 2012. We've already greatly reduced the monthly mobile bill, and we've brought free dental care for children up to 12. This is a huge difference, which will ultimately leave Israel's people with more money in their pockets."

Published by Globes [online], Israel business news - www.globes-online.com - on July 26, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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