Limits in Israel for cash payments to be cut again

Shekel Photo: Shutterstock

The legal limit for cash payments is to be reduced from NIS 11,000 to NIS 6,000 for businesses and from NIS 50,000 to NIS 15,000 for individuals.

The legal limit for cash payments is to be nearly halved from NIS 11,000 to NIS 6,000 for businesses and from NIS 50,000 to NIS 15,000 for individuals.

Minister of Finance Israel Katz has approved the proposal by Israel Tax Authority chief Eran Yaakov and the Ministry of Finance budget division to add a clause to the Economic Arrangements bill to cut the ceiling for using cash in a transaction to NIS 6,000 for business and NIS 15,000 for individuals. The maximum amount of cash that can be used in a transaction has been NIS 11,000 since January 2019 for businesses and NIS 50,000 for individuals.

The clause in the Economic Arrangements bill will also set out financial sanctions for businesses and criminal fines for individuals who violate these limits. Katz's approval will also need to be endorsed by the Knesset Constitutional Committee.

According to data gathered by the Israel Tax Authority, 84% of the public have been obeying the law on cash transaction limits since it was introduced in January 2019.

The Tax Authority said that between February 2019 and the end of January 2020, it audited 20,654 businesses and found 3,392 violations of the law.

Published by Globes, Israel business news - en.globes.co.il - on July 2, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Shekel Photo: Shutterstock
Shekel Photo: Shutterstock
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