Stanley Fisher reiterated the importance of meeting the deficit target and to raise taxes to do so.
There is probably no choice but to raise income taxes, Governor of the Bank of Israel Prof. Stanley Fischer told a group of capital market economists today. He added that VAT should also be raised.
Earlier this week, "Globes" reported that the Ministry of Finance is planning to raise income tax rates by two percentage points across all brackets and to raise VAT by one percentage point to 17%. Yesterday, Bank of Israel Research Department director Natan Sussman told "Globes" that taxes must be raised.
Parties at the meeting said that Fischer is very worried about possible developments in Europe and the chances of a severe financial crisis. He therefore wants a "safety cushion" for the Israeli economy; i.e. not to increase the deficit. He reiterated the importance of meeting the deficit target and to raise taxes to do so.
Published by Globes [online], Israel business news - www.globes-online.com - on July 5, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012