The Teva CEO told the "Globes" Israel Business Conference that Teva is paying the regular tax rate in Israel.
Commenting on the tax benefits that Israel grants to multinational giants, Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) CEO Erez Vigodman said, "Israel should be proud. Teva is committed to Israel. We'll go on doing business here under any conditions. We'll do what we must to make our business here competitive, so that it will serve Teva's worldwide activity. Teva made it big with Copaxone. The tax benefits were granted because it was a risky project. To say it was bound to succeed is hindsight, but no one predicted such a big success. Teva's business plan included annual sales of $200 million, while we're actually selling $4 billion. The benefits granted to Teva don't mean that Teva doesn't pay taxes; it pays reduced taxes. The saying that if you pay Teva, then others don't get anything is simply incorrect. Teva currently pays 9% tax in Israel - the regular tax rates."
Vigodman added, "What we lack here most of all is consideration of the added value that the industry gives the country. If Israel measures what it gets from major companies like other countries do, then we'll create an accurate language between the sector and the state. You can't put only the tax question under the microscope.
"I believe that we can and should take our country to the next big advance in the economic terms we're talking about. There's a plan here that can lead to the establishment of more industries and companies that will lead Israeli industry in the long term, and help Israel win in the global competition. We need leadership."
Published by Globes [online], Israel business news - www.globes-online.com - on December 7, 2014
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Erez Vigodman