Property Owners in Israel to Get Choice of Loan or Tax

The Israel Cabinet has decided to give property owners the choice of participating in the national compulsory loan or paying an out right tax, it was announced here today by a government spokesman.

The Cabinet, which met twice yesterday and last night on this aspect of the compulsory loan, plans to present whatever draft law it writes to a caucus of the government parties before it is presented to Parliament, the spokesman revealed. He added that it had not yet been decided what the ratio between the loan and the property tax would be.

Also, the Cabinet discussed the problem of balancing its foreign exchange holdings and a new plan for imports for next year. The spokesman explained that the import plan would be announced shortly, but probably would not go into effect until the fall since the country already has a large enough supply of imports to last until the plan must be put into effect. He reported that the government is attempting to increase its exports and use extra earnings for payment of outstanding debts, while covering its normal budget from existing revenue sources.

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