The promise of Finance Minister Moshe Kahlon to return part of the tax surplus to the middle class by lowering income tax for earning around 10 to 15 thousand shekels a month will not be executed. So says the economic observer «mA’ariv» Judah Sharoni.
According to the Finance Ministry, the cost of such a step was 1.5 billion shekels a year. The Bank of Israel was strongly against reducing income tax, and in the end Kahlon agreed with him given the arguments, chief among them – have already identified the budget deficit in 2019 in light of the assumed liabilities by the government.
However, according to Sharon, the Ministry of Finance intend to consider the possibility of achieving the promise of lower taxes in the second half of 2018 depending on the volume of tax collection.
In 2017, tax revenues exceeded the projections of 17.5 billion shekels. Of this amount, 3.75 billion shekels transferred to the Fund of the property tax in case you need compensation of damage from natural disasters and military operations, and 6 billion aimed at reducing public debt.