www.bethelfinance.com
At the special cabinet meeting held in Zefat to mark the opening of the new medical school in the town, the government has approved the taxation chapter of the Trajtenberg committee's report.
According to the government announcement, the changes approved will lead to lower prices on various everyday consumption products, with almost immediate effect.
The main changes are as follows:
* A halt to the lowering of income and company tax rates. Company tax will rise from 24% to 25%, while the highest income tax bracket for individuals will rise from 44% to 48% on taxable monthly income of NIS 40,231 or more. These measures are expected to bring extra revenue of NIS 2.1 billion.
* From 2012, tax on interest, dividends, capital gains, and real betterment, will rise from 20% to 25%, with the rate for material shareholders rising from 25% to 30%. Expected extra revenue: NIS 1.3 billion.
* Income for National Insurance contributions purposes will be capped at five times the average salary. Expected cost: NIS 800 million in 2012.
* A 2% surtax on those earning with over NIS 1 million income from work and capital. Expected revenue: NIS 400 million.
* Two tax credit points for fathers of children up to age three. Expected cost: NIS 1 billion.
* A reduction in fuel excise of NIS 0.40 on gasoline and NIS 0.20 on diesel. Expected cost: NIS 2.5 billion.
* A gradual reduction in purchase tax and customs duties. Expected cost: about NIS 1.5 billion.
* Cancellation of the stepped direct tax reductions planned to continue to 2016. Expected extra revenue: NIS 2.5 billion.
No comments:
Post a Comment