ISRAEL 
HIGH-TECH & INVESTMENT REPORT

from the May 2002 issue


Key Points of the Government's Emergency Economic Plan


Israel's Finance Minister(as we went to press) announced an Emergency Program aimed at slashing the country's budget by $3.0 billion.

Tax on stock market and savings
Freeze on salaries, even in private sector
Benefits to be cut 4%, including children and handicapped
VAT to 18%, gasoline and cigarettes tax increased
15%-25% tax on interest earnings from savings

The initial reaction is that the proposals including the taxation on savings, reduced social benefits and the freezing of wages, in the private and public sector until the end of 2003, will face stiff eopposition in the Knesset, Israel's parliament and on the part of the Histadrut, the country's influential labor union.

The likelihood is that a considerably watered down version will be implemented over the following months.


Reprinted from the Israel High-Tech & Investment Report May 2002

Click HERE to request further information.
Click HERE to go BACK.