Bethel Finance: Steinitz mulls tax on luxury homes and cars

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Bethel Finance news:
The Ministry of Finance is preparing an alternative to the wealth tax - a 2% surtax on incomes from labor and capital gains that exceed NIS 1 million. The tax, which was due to come into effect as part of the Trajtenberg recommendations, was withdrawn at the last moment, but Minister of Finance Yuval Steinitz says that the government may levy a tax on luxury homes and cars instead.

"We're considering a tax on luxury homes and cars," Steinitz told “IDF Radio" (Galei Zahal) today, during his visit to India. "We'll target the truly rich. I hope that within a few weeks, we'll prepare an alternative that will be good and serious, and acceptable to everyone."

On the issue of contract workers, Steinitz said that the Ministry of Finance was prepared to "significantly increase" contract workers' salaries. Referring to Histadrut chairman Ofer Eini, he said, "In the past, Eini has shown responsibility, and he should reach a compromise now too, and not harm Israeli citizens and the economy."

On the crisis at Channel 10, which is liable to close in January after the government refused to reschedule its NIS 60 million debt, amid charges that this was a political decision, Steinitz said, "I hope that Channel 10 will survive, but let's not rush to accuse the government with baseless charges."

Steinitz is on an official visit to India to tighten economic ties and diversify Israel's export markets, in view of the slowdown in Western economies. "I have set a goal of greatly strengthening Israel's relations with India and China. This is our future in terms of exports and economic cooperation. We're moving forward on a free-trade agreement, and we'll complete the negotiations by mid-2012. This is a huge strategic measure," he said.

"We'll also promote a financial protocol that will strengthen the ability of Israeli companies to work in India. We'll set up a government mechanism to promote high-tech research by Israeli institutions and companies. We'll create a strategic, scientific, technology, and academic partnership that will serve the Israeli economy for decades to come," the finance minister concluded.