The Knesset plenum has approved the second and third readings of Trajtenberg Committee's tax proposals by a majority of 41 votes. The tax reforms are as agreed by Knesset Finance Committee chairman MK Moshe Gafni (United Torah Judaism) and the Ministry of Finance.
According to the tax reform that will come into effect from January 1, 2012, those earning between NIS 8,000 to NIS 14,000 a month will pay 2% less income tax, costing the state coffers NIS 1 billion annually.
Other tax incentives in the new legislation include tax points for fathers with children aged up to three worth NIS 418 per child per month. In addition, interest rates on government subsidized mortgages will not rise above 3%, lower than the interest charged by banks. The planned rise in fuel excise has also been cancelled.
Published by Globes, Israel business news - www.globes-online.com - on December 5, 2011
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