Prime Minister Sharon and Finance Minister Silvan Shalom began presenting their proposed economic cuts this morning to coalition party leaders. They began with Labor party head Binyamin Ben-Eliezer, and continued with MK Yaakov Litzman (United Torah Judaism), head of the Knesset Finance Committee. Sharon and Shalom will hold a press conference about the proposals later today.
Reports are that the plan includes hiking Value Added Tax on all products and services to 18% (it currently stands at 17%), a steep jump in taxes on cigarettes and gas, cuts in social payments (child allowances, pensions, unemployment), and an increase in health and national insurance payments for the high-income classes. Stocks and savings may also be taxed, but this will be delayed at least until the Rabinowitz Commission completes its study of the matter. The Tel Aviv Stock Exchange (TASE) reacted nervously to the plan, and the dollar has jumped to 4.85 shekels.
Reports are that the plan includes hiking Value Added Tax on all products and services to 18% (it currently stands at 17%), a steep jump in taxes on cigarettes and gas, cuts in social payments (child allowances, pensions, unemployment), and an increase in health and national insurance payments for the high-income classes. Stocks and savings may also be taxed, but this will be delayed at least until the Rabinowitz Commission completes its study of the matter. The Tel Aviv Stock Exchange (TASE) reacted nervously to the plan, and the dollar has jumped to 4.85 shekels.