Minister of Finance Yair Lapid notched up an achievement today when the social-economic cabinet unanimously approved the recommendations of the Sheshinksi 2 Committee on the government take from exploitation of Israel's natural resources. Minster of the Economy Naftali Bennett and Minister of National Infrastructures, Energy and Water Silvan Shalom voted in favor of the recommendations despite the fact that the directors of their ministries, who were members of the committee, issued a minority opinion dissenting from the committee's report.
The committee's chairman, Prof. Eytan Sheshinski, told "Globes" following the decision that "there's a long way to go, but I'm optimistic." Sheshinski said he had been pleasantly surprised by Bennett and Shalom's support for the recommendations.
The Ministry of Finance intends to submit the draft bill for taxation of natural resources to the ministerial legislation committee in the coming weeks, and thereafter to submit the bill to the Knesset, where it will face a difficult passage.
The committee recommended imposing a graduated surtax on the profits of extractors of Israeli natural resources at rates of 25% and 42%. The tax is supposed to increase the government's take from production of phosphates, potash and other minerals to 46-55%, and yield the state some NIS 400 million annually. The new taxation will be imposed only on profits in excess of a 14% return on capital.
Meanwhile, the Israel Chemicals Ltd. (TASE: ICL) workers committee has expressed resentment at the company's plan to develop its activity in Spain. Tomorrow, the Israel Chemicals board will discuss the potash mine that the company owns in Catalonia, in which it plans to invest more than NIS 1 billion.
Avner Ben-Senior, chairman of the workers committee at Israel Chemicals unit Bromine Compounds, said, "At a time when the government is busy giving tax breaks to Israel Chemicals, the company's management is shifting its money overseas. It's inconceivable that the company's management should announce that it is laying off thousands of workers in Israel, while at the same time investing billions in Catalonia and creating jobs for the Spanish." Ben-Senior called on the government to set up a committee of enquiry into the matter.
An Israel Chemicals source said that the company's moves in Spain were the result of the Israeli government's unyielding policy towards it, creating a working environment that did not enable it to carry out investment in the south of Israel and harming the economic viability of such investments. The source said that the Sheshinski 2 recommendations forced Israel Chemicals to adapt its activity to the changing reality, including the transfer of activity to other places around the world. "Israel has become a bad business environment for Israel Chemicals, characterized by uncertainty and instability," he said.
Published by Globes [online], Israel business news - www.globes-online.com - on November 10, 2014
© Copyright of Globes Publisher Itonut (1983) Ltd. 2014
Published by Globes [online], Israel business news - www.globes-online.com - on November 10, 2014
© Copyright of Globes Publisher Itonut (1983) Ltd. 2014