Two years since its launch when the first NIS 1 billion was transferred to it, Israel's sovereign wealth fund, known as the Citizens' Fund, has accumulated close to 6 billion shekels in levies. Total levies do not include the profits accumulated in the interim fund before being transferred to the Citizens' Fund or the profits earned by the Citizens Fund from the investments of the funds of the final levies. Total levies collected as of June 16, 2024 amounted to NIS 6.85 billion.
The Israel Tax Authority today published a revised forecast for levy collection on profits from gas, oil and natural resources in the coming years. The Israel Tax Authority predicts that NIS 55-72 billion will be collected, up from NIS 45-53 billion in the previous forecast. The rise stems from larger volumes of gas produced from Israel's three major offshore fields and higher gas prices in the coming years.
Israel's gas partnerships pay several types of taxes to the state on their revenues from gas production: corporate tax like any other company; royalties for the production of gas from the natural resources belonging to the public, which are set according to the volume of gas produced; as well as a tax on excess profits (the so-called Sheshinski tax), on the basis of which the Citizens' Fund - the sovereign wealth fund - was established and began operating about two years ago, after more than NIS 1 billion had accrued in its coffers.
Every quarter, the Israel Tax Authority transfers the collected levies to the Ministry of Finance accountant general who manages the levies not yet in the fund during the interim period before together with investment profits or losses, they are converted to foreign currency and transferred to the fund once a quarter.
Published by Globes, Israel business news - en.globes.co.il - on June 17, 2024.
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