The Palestine Government today announced a new tax schedule which, it said, will partially offset the expected $16,000,000 deficit for the fiscal year 1944-45. The announcement of the new measures pointed out that expenditures during the fiscal period of 1943-1944 were about $58,000,000 of which $14,000,000 went to subsidize the cost of bread and $10,000,000 to provide cost-of-living allowances for government employees.
The government deficit for 1943-1944 almost wipes out the surplus of $16,000,000 which existed at the beginning of the fiscal year, a Tax Office spokesman said, adding that it was unlikely that there would be any reduction in government expenditures in the coming year. Consequently, he continued, it is necessary to find additional revenue totalling $16,000,000.
The new schedule does not change the rate or scope of the income tax, except to remove certain classes of cooperative societies from the exempt category. The rural property tax, which was doubled last year, has been redoubled, while certain categories of land previously exempt will now be taxed. For instance, land used for fish hatcheries – which are found mainly in Jewish settlements – will be taxed at the same high rate as banana plantations.
Other forms of direct taxation are under consideration, it was learned here. Increases in indirect taxes will result from higher customs and excise levies on a wide range of articles including liquor, tobacco, and gasoline. An excise duty has also been placed on cement for the first time. Various license fees, including those for motor vehicles, have been raised.
The Archive of the Jewish Telegraphic Agency includes articles published from 1923 to 2008. Archive stories reflect the journalistic standards and practices of the time they were published.
