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Israel Government Body Approves Compulsory Loan to Government

A proposal to levy a compulsory property loan of 15,000,000 to 20,000,000 pounds to cover a growing deficit in Israel’s budget was approved today by a majority of the Government Coordination Committee.

The compulsory loan, as proposed by Finance Minister Levi’ Eshkol, would be in the form of advance payment of property taxes due in the next fiscal year. The compulsory advance payment would be repaid in the form of deductions from taxes spread over several years.

While the Coordination Committee is an unofficial body, approval in that committee was considered as virtually assuring passage in the Knesset, since the committee’s majority decisions bind all members of the coalition in the Knesset. A majority vote for the measure is thus assured when it comes up for Knesset action.