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      Archive: 10/11/2009
      14:40
      Reported

      News Brief

        10/11/2009, Tishrei 23, 5770

      MK Shai: Don't Raise Investment Home Purchase Tax


      In an attempt to reduce the cost of apartments for young couples and the poor, MK Carmel Shama (Likud) plans to introduce legislation that would increase the purchase tax on dwellings acquired for investment purposes – but doing that would be a terrible mistake, says MK Nachman Shai (Kadima).

      "The proposal by MK Shama and others are a type of government intervention in the marketplace, and an attempt to change the rules of supply and demand. It is shocking to think that Prime Minister Binyamin Netanyahu, whose basic economic principle is reducing government intervention in the economy and lowering taxes, would support such a ridiculous idea," Shai said, adding that the move would do nothing but increase rents charged by purchasers of investment apartments for tenants who are already paying high rents.