The Knesset’s law and justice approved on Thursday, March 8, second and third readings the bill of the Ministry of Finance on the restriction of the use of cash.
Still the advancement of the bill were blocked in the last two years, but eventually it was approved after consultation with the Chairman of the Finance Committee of the Knesset Moshe Gafni.
The bill provides for the restriction of the use of cash as follows:
In the first phase, which will come into force on 1 January 2019
— in the transaction between two private persons – to 50 thousand shekels
in the transaction between the individual and the business to 11 thousand shekels
In the second stage, the effective date of which is in force at the moment is not defined
— the deal between two individuals – up to 15 thousand shekels
in the transaction between the individual and the business to 6 thousand shekels
The second phase will come into force after the approval of the Minister of Finance, Minister of justice and Chairman of the Bank of Israel, and after approval of the legislative Committee of the Knesset.
In case of exceeding the limit in the amount of 25 thousand shekels, each of the parties to the transaction will be penalized by 15% the transaction amount in excess of 25-50 thousand shekels fine for each side will be 20%, and in excess of more than 50 thousand shekels – 30%.
The exception to the law will make the transaction for the sale of cars that can be held in cash in the amount of 50 thousand shekels.
For religious solidarity funds (GMAC), which is still one of the reasons for the delay adoption of the law there will be exceptions and the law will apply from 2021. At the same time, at the request of the legal adviser of the government, if in this period, the Knesset will pass a law on the control of Grahami, then the law will be extended to them immediately.
The law also prohibits the breaking of trades for partial payment in cash and partial credit card or other method to bypass this law.