Chairman Moshe Gafni of the Knesset Finance Committee said, Monday morning, "We standbeforea difficult periodof alarge deficitwhich will requirebudget cutsand possiblythe raising of certain taxes, such asthe excisetaxon fuel, increasing water and electricitytariffsandthe prices ofmanyproducts."
Gafni's warning came at the begining of a meeting in which the committee was expected to approve orders to reduce the exemptions on imported cigarettes and to raise taxes on tobacco-related products. It is the third meeting on the subject, following stormy debate and objections by committee members.