Former Governor of the Bank of Israel David Klein criticized the NIS 1.9 billion across-the-board cut in the government ministries' budget for the purpose of financing Operation Protective Edge. While the government is scheduled to vote today on the cut, Klein asserts that the government's policy is mistaken and unsuitable.

"There's something irrational in this that does not proper for the government's work," Klein said on Galei Tzahal (Army Radio). "The government should set priorities. This isn't a real policy."

Klein proposed postponing Minister of Finance Yair Lapid's 0% VAT plan for apartments. He said, "This isn't the time to implement this idea, even if it is a good idea." He asserted that before talking about raising taxes, "there are exemptions that should be eliminated," referring to the VAT exemption for fruits and vegetables.

Published by Globes [online], Israel business news - www.globes-online.com - on August 31, 2014

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