Israeli Prime Minister Ariel Sharon approved Thursday Finance Minister Benjamin Netanyahu’s tax reduction plan, which the later described as ‘imperative for market growth.’

The plan is expected to be submitted for government approval on June 15, after which it would also be presented to the Knesset’s Finance Committee for approval.

 

The plan encompasses the following tax reductions:

• Income tax reduction for low income citizens.

• The business tax reduction will start at 2% this year and reach 24% by 2010.

• Tax on stock market profits to become 10-15%, as opposed to the current 15-20%

• The value-added tax will be reduced from 17 to 16%.

• Real estate and maximum rate income tax will be reduced from 49 to 45%

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