Industry Ministry and Israel Chemicals are in talks for a compromise on tax breaks for the company.
Top Ministry of Finance officials today told the Knesset Finance Committee that there has been no change in government policy regarding Israel Chemicals Ltd. (TASE: ICL) exemption from terms of the Law for the Encouragement of Capital Investments. Meanwhile, Ministry of Industry, Trade and Labor officials have been in negotiations with Israel Chemicals executives on a compromise on tax breaks for the company.
Finance Committee members said that they agree with the plan for Israel Chemicals. The MKs added that they were in talks with government-owned defense companies over the impact on them of the amendment to the Law for the Encouragement of Capital Investments. These companies will apparently not get exemptions that they have enjoyed until now, but will receive package of conditions in compensation. Although they will no longer be eligible for benefits under the Law for the Encourage of Capital Investments, they will get alternative breaks on dividends, shares, and so on.
Israel Chemicals' tax breaks are estimated at NIS 500 million a year.
Israel Chemicals' share price rose 1.2% by early afternoon to NIS 54.53.
Published by Globes [online], Israel business news - www.globes-online.com - on December 2, 2010
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