JERUSALEM (Aug. 5)
The increase of 10 to 20 percent in excise taxes on tobacco, alcohol, cooking gas and kitchen appliances imposed yesterday was expected here today to be followed by further imposts as the government learned the extent of its financial needs to pay for the modern armaments it has been seeking throughout the Western World
The imposition of new taxes were interpreted here as evidence that the government’s arms quest was successful at least in part and that the new funds would be used for purchases. As further purchase commitments are made, it is believed, taxes will be increased.
From the outbreak of the Sinai operation until last April, a special defense tax has provided the necessary funds for weapons purchases.