Natural resources probe underway

Prof. Eytan Sheshinski will head a committee to examine royalties from Israel's natural resources, especially those paid by Israel Chemicals.

Minister of Finance Yair Lapid today announced the composition of the Sheshenski 2 Committee, which will examine the policy of royalties paid to the state by private entities from the use of the country's natural resources.

Prof. Eytan Sheshinski, who headed committee on oil and gas royalties, will chair the committee. The other committee members are National Economic Council chairman Prof. Eugene Kandel, Accountant General Michal Abadi-Boiangiu, Israel Tax Authority director general Moshe Asher, Ministry of Finance head of Economics and State Revenues Administration Dr. Michael Sarel, Bank of Israel Research Department Macroeconomics and Policy Division head Dr. Adi Brender, Deputy Attorney General Avi Licht, Ministry of Energy and Water director general Shaul Tzemach, Ministry of Environmental Protection director general Alona Sheffer-Karo, Ministry of the Economy director general Amit Lang, Budget Director Gal Hershkowitz, and Ministry of Energy director of Natural Resources Administration Yossi Wurtzburger.

"The Sheshenski 2 Committee will seek to ensure that the government take (taxes, royalties, and other payments) will reflect what the public should receive from the use of national resources," said the Ministry of Finance in a statement.

The Sheshenski 2 Committee will examine the fiscal system currently in place regarding the government take from the proceeds of the use of national natural resources by private entities, will draw up an updated fiscal system for the principles relating to the government take for the use of natural resources by private entities (except for oil and gas for which a policy has already been set), and will examine applying the principles that will be drafted with regard to Dead Sea mineral extraction."

In other words, the Sheshenski 2 Committee will focus on the royalties and taxes paid by Israel Corporation (TASE: ILCO) subsidiary Israel Chemicals Ltd. (TASE: ICL) to the state. The share prices of both companies fell following the announcement.

Published by Globes [online], Israel business news - - on June 17, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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