Kahlon: I've decided to cut taxes

Moshe Kahlon  photo: Moshe Milner, GPO
Moshe Kahlon photo: Moshe Milner, GPO

At this stage, Minister of Finance Moshe Kahlon is not saying which taxes will be cut.

Minister of Finance Moshe Kahlon said yesterday at a parting ceremony for outgoing Israel Tax Authority director Moshe Asher that he had decided on a tax cut. The decision on which taxes will be lowered and by how much will be made after the upcoming Passover holiday, Kahlon told Galei Tzahal (Israel Army Radio) this morning.

Kahlon stated in the past that he would delay a decision on tax cuts until he saw the figures for the first quarter of the year. In the light of the good economic figures, he has reached a decision. While Kahlon is not saying at the moment which taxes will be cut, Prime Minister Benjamin Netanyahu does not conceal his desire to cut Companies Tax and Income Tax.

The National Economic Council, headed by Prof. Avi Simhon, has presented a plan for reducing income tax for those earning over NIS 20,000 monthly. According to Simhon, this will encourage high-tech engineers to remain in Israel and not consider emigration. The cut in corporate taxation in the US in President Trump's tax reform represents additional grounds for a further reduction in Companies Tax in Israel (the rate fell to 23% at the beginning of this year), but this position is not wholly supported by government officials. As previously reported by "Globes", the view of the professionals is that the cut in corporate taxation in the US to 21% is not the greatest problem presented by the Trump reform as far as Israeli companies are concerned, since exporting companies in any case pay lower tax in Israel.

The Ministry of Finance reports that discussions on tax cuts will start shortly.

Published by Globes [online], Israel business news - www.globes-online.com - on March 22, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

Moshe Kahlon  photo: Moshe Milner, GPO
Moshe Kahlon photo: Moshe Milner, GPO
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