Tax Authority director Moshe Asher says the betterment tax exemption will be capped.
Israel Tax Authority director general Moshe Asher today confirmed a "Globes" report that new taxes will be levied on people moving up in the housing market and on luxury homeowners.
Today, the Knesset Finance Committee is due to approve an extension of the betterment tax exemption. Ashe said that he wanted to extended the general exemption only for "continuity and stability", but warned that the exemption would be capped in the new economic plan, so that owners of luxury homes would not benefit from the full exemption.
Asher also said that the tax exemption would be capped for owners of second homes (apartments for investment), including foreign residents, who are considered as owners of second homes.
Asher hinted that changes in purchase tax for luxury homeowners and buyers of better homes were on the way.
Published by Globes [online], Israel business news - www.globes-online.com - on May 1, 2013
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