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