Minister of Finance Yair Lapid today promised again not to raise taxes in the 2015 budget, despite Operation Protective Edge. He said the economy was strong enough to cope with the economic effects of the fighting over the past month.
"We can contain the costs of the operation in the 2014 budget," Lapid declared at a press conference. "We're an economically strong country, and unexpected expenses are taken into account. We won't raise taxes. The economy needs growth engines right now, not handicap weights. There's no reason to raise taxes at this time."
According to Lapid, direct property damage from the Operation Protective Edge amounts to NIS 50 million, and indirect damage totals NIS 750 million. He asserted that the government compensation fund "is ready to absorb these costs."
Lapid noted that the defense costs of the operation, including flying hours, reservist call-ups, and munitions, were "a negligible proportion of GDP. We have already transferred NIS 600 million. We won't begrudge a single shekel for the security of IDF soldiers. I won't pretend that the operation isn't creating new issues. We're working with the defense establishment, and there are new demands that didn't exist before.
"I'm hearing questions about the effect of the operation on the economy. Look at what happened with Operation Pillar of Defense, Operation Cast Lead, and the Second Lebanon War. Our economy is dynamic and strong, and we have every reason to believe in it."
Published by Globes [online], Israel business news - www.globes-online.com - on August 7, 2014
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